Categories: MarketsMenafn

The Downward Spiral of Coinbase’s Base Layer-2 Network Continues With Another Rugpull

In the realm of decentralized finance, trust is paramount. However, Coinbase’s Base Layer-2 network has recently faced a series of unfortunate events, casting shadows over its reliability. Our in-depth analysis delves into the recent breaches and scandals that have shaken its foundation.

The Magnate Finance Exit Scam: A Blow to Trust

A few weeks after a shocking $23 million rug-pull involving the BALD token, Coinbase’s Base Layer-2 was hit again. Once seen as a trustworthy entity, Magnate Finance performed an exit scam, depriving users of a staggering $6.5 million.

Security experts from PeckShield have unveiled the underlying tactics. They allege that Magnate Finance resorted to manipulating the price oracle of DAI and wETH to orchestrate this massive heist. Consequently, their total value locked plummeted dramatically, from $6.51 million to $14,000.

ZachXBT, a prominent on-chain investigator, shed light on some alarming discoveries. The platform’s website has gone dark, and its Telegram community has disappeared. Delving deeper, ZachXBT linked the deployer’s address to the notorious Solfire $4.8M exit fraud.

The Solfire Saga: An Earlier Betrayal

In January 2022, the crypto community was abuzz with revelations about Solfire.Finance. This platform, now synonymous with deception, defrauded users of over $3 million. In a move echoing Magnate Finance, Solfire promptly vanished, erasing its digital footprint.

Branding itself as an avant-garde lending and borrowing platform, Magnate’s tokenomics boasted of Layer-2 revenue sharing and a novel interest rate model. Such promises, however, now appear hollow in light of recent events.

With the introduction of its Base Layer-2 network, Coinbase ignited the development of myriad decentralized applications. While Base’s mission was noble – to forge a scalable, user-centric Ethereum network – it unwittingly opened Pandora’s Box. This platform soon became fertile territory for malicious actors seeking unsuspecting prey.

Encryption AI serves as a grim reminder. This project, hailed for its potential, left a trail of devastation with a ruthless $2 million rug pull.

A Sea of Deceptive Tokens on Base: Solidus Labs’ Findings

But that’s not all. In its investigative report, Solidus Labs unveiled over 500 dubious tokens waiting in the wings before the blockchain’s launch. The study further revealed a concerning detail: about 300 tokens had hidden functions, enabling unchecked coin minting. 

Moreover, another 70 smart contracts concealed transaction fees, while over 60 were cunningly crafted honeypots.

The post The Downward Spiral of Coinbase’s Base Layer-2 Network Continues With Another Rugpull appeared first on CryptoMode.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

ZEREBRO Price Collapses 40% in Just 3 Hours: Market Cap Tanks to $45 Million

Zerebro, one of the largest AI projects, has seen its price dropped sharply today, going…

23 hours ago

Ethereum Price Prediction: Can ETH Sustain Its Bullish Momentum as Price Surges 15%?

Ethereum is back in the spotlight, not for explosive price action, although it has made…

1 day ago

Ajman Bank Successfully Prices USD 500 million Inaugural 5 Year Sukuk

Ajman, UAE, 25th April 2025, Ajman Bank P.J.S.C. (“Ajman Bank” or “the Bank”), the first Islamic…

2 days ago

The Rise of Autonomous Finance: How 9M is turning AI into a fully operational investment system

The Rise of Autonomous Finance: How 9M is turning AI into a fully operational investment…

2 days ago

Echo Launches Real Unique Tokenomics with Real Yield in USDC

Douglas, Isle of Man, 25th April 2025, ZEX PR WIRE, Echo is about to launch…

2 days ago

World of Dypians Wins $450K in BNB Chain’s Support Program and Announces Monumental New Features

Tortola, BVI, 25th April 2025, ZEX PR WIRE, World of Dypians (WoD), a highly immersive…

2 days ago