Solana Blockchain Sees First Rug Pull, Over $6 million lost

Luna Yield, a DeFi-based protocol on Solana blockchain, has recently rug pulled with funds approximately $6.7 million belonging to investors taken away, according to some reports.

The project platform, which promised investors high yields, suddenly went down, locking people outside their fund. The dedicated page for the Luna Yield on the Solana website has failed to open, only showing an ‘error 404’. This marks the latest and the first major rug pull on the Solana blockchain.

Based on available data from SOL scan block explorer, around $6.7 million in tokens were taken away from the developers in the rug pull.  Unfortunately, the team behind the project was anonymous. 

As succor to the loss, Solpad, the platform that facilitated the launch of the Luna Yield IDO, has indicated it would be compensating the affected IDO participants, according to the Solpad team in a tweet, 

“After internal discussion within Solpad Foundation, we have finalized the compensation plan for Luna Yield IDO participants.” It goes on to say that, “We will sort out the list and directly [distribute] the compensation into the participant’s wallet (the same wallet that joined the IDO on August 16. We will compensate users in USDC, with a value equal to 60% of the purchased amount.”

As stated on the Solpad Twitter account, they will start distributing the compensation to users starting from this week, and it would be 60% of what users purchased.

Cardano Could be a Victim of a Rug Pull too

Per this rug pull, critics have warned other blockchains, like Cardano, saying it could see a rug pull as soon as its latest upgrade is being activated.

An individual wrote on Twitter, “The rug pull that recently occurred in the Solana ecosystem from Luna Yield is something I can see happening in the Cardano ecosystem literally days to weeks after Alonzo if proper scrutiny isn’t exercised by the community involved,” he added that “Good tech isn’t immune to stupidity.”

The over 28,000 followers of Solana Daily got the news of the rug pull on August 20 via a tweet: “Rug pull on Solana. Yesterday, [Solpad] announced that their second IDO of Luna Yield went wrong when the dev team of the project decided to shut down all the social media and withdraw the liquidity. Hope that no more rug pulls appear [in] our ecosystem.”

 

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