Lucky Star Currency ($LSC), a relatively new cryptocurrency token on the Binance Smart Chain (BSC), has suffered a massive blow, shedding a staggering 99.25% of its value due to an exit scam totaling approximately $1.11 million in BUSD stablecoin. The incident has once again put the spotlight on the growing scams and malicious activities in the crypto and DeFi sectors.
An exit scam is a type of fraud in which a business, project, team, or individual takes money from investors or customers and then disappears, leaving them with worthless assets or nothing. Exit scams are often perpetrated in the cryptocurrency industry, where they are known as “rug pulls.”
Lucky Star Currency Scammed Investors of $1.11 Million
The rugpull was exposed by blockchain security firm PeckShield, which identified an address that reaped substantial profits by offloading LSC tokens. The actor behind this malicious move received a total of 3 million Lucky Star Currency (LSC) tokens from two separate contracts.
— PeckShieldAlert (@PeckShieldAlert) October 9, 2023
One contract, responsible for around 1.4 million tokens, originated from the deployer, while the other, sending about 1.65 million tokens, served as the node fee address for the crypto project.
The rising popularity of cryptocurrencies and the increasing number of Defi cryptocurrency tokens have also drawn fraudsters to the industry.
Incidents like the Lucky Star Currency exit scam highlight the need for investors and traders to be extremely cautious before investing in any project in the cryptocurrency and DeFi markets.
However, the exit scam caused the value of the Lucky Star Currency (LSC) token to plummet from about $3 to a mere $0.019 at the time of writing. Even though the token is little known, real-time data from Coinbrain shows that LSC currently has a market capitalization of $272,616 and more than 32,000 holders.
As investors grapple with this troubling development, many cybersecurity firms have repeatedly warned about the inherent risks associated with digital currencies. This incident serves as a stark reminder of the importance of thorough due diligence and research when navigating the volatile and sometimes murky waters of the cryptocurrency market.