Is this going to be Cardano’s [ADA] first big rug pull?

FlanoSwap claims to offer many things on Cardano, including DEX, NFT marketplace, a launchpad, token farm, and a wallet. Twitter account, “big pey” is warning users about this new DeFi platform on Cardano. The warning says it can be the first big rug pull on Cardano. If FlanoSwap does this, it can be devastating for Cardano that is trying to move the initial steps of powering the DeFi industry.

Warning for a Young Community

Cardano community is trying to show a robust alternative for DeFi lovers. There are many tools and features under development for this blockchain. All of them try to offer a better experience for developers and users. Next to lower gas fees and speed, the Cardano community wants to offer interoperability and ease of use in the DeFi sector. Many DeFi protocols and platforms are getting ready to fully launch on Cardano. But some of them may be rug pulls that want to misuse the hype around the new community. FlanoSwap can be one of them.

FlanoSwap claims to offer almost everything you need from a DeFi platform. A DEX, an NFT marketplace, a launchpad for new projects, farming tokens, and a wallet are offerings of this new platform. According to the Twitter account, “big pey,” this can be a scam platform and do the first rug pull in the Cardano blockchain.

The warning focuses on the claims of FlanoSwap around its wallet. The platform says it has a beta version for the wallet. The biggest problem of this wallet is about receiving recovery phrases from users. It seems that recovery phrases are sent to servers of FlanoSwap. It can be a scam, and the team behind it may steal your assets, especially ADA tokens. The warning tweet urges users to be careful about their assets and recovery phrases:

THREAD:
Today I would like to report something that is highly malicious. This could be our first big rugpull on #Cardano.@FlanoSwap claims to do it all. A DEX, an NFT marketplace, launchpad, token farm, and a wallet. pic.twitter.com/DPaVCg0NHj

— big pey (@bigpeyYT) August 30, 2021

“Anyone reading this, please do not enter your recovery phrase on their site. Or any new wallet, for that matter. (Not financial advice) Please, please, please be careful with your $ADA. Never send what you’re not willing to lose, don’t ape into any new project.”

Another warning sign about FlanoSwap is that they removed the “team” page from their website. It seems that all the names and pictures on that page were generated by AI, and none of them were real people.

Cardano is a blockchain with lots of hype around it these days. Many users and traders are waiting for new platforms, especially DeFi ones, to benefit from being the first in this blockchain. But everyone should be careful about scams and rug pulls that may want to benefit from this situation and steal cryptocurrency.