As BNBchain falls victim to another rug pull, here’s a look at the network

• The token identified as XRP on the BNBChain network fell victim to a rug pull.
• Sentiment around the BNB chain continued to decline. The price of the token, however, saw some improvement.

Binance[BNB] has faced extensive regulatory scrutiny for a considerable duration, leading to a decline in sentiment regarding both the exchange and BNB. The recent occurrence of a rug pull on the network could exacerbate the already substantial critical sentiment surrounding the BNB chain network.

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Holders get liquidated

The token identified as XRP (HarryPotterObamaPacMan8Inu) on the BNBChain network fell victim to a rug pull incident recently. Specifically, an address with the identifier 0x86B7F5…72095c4E executed the sale of tokens amounting to $162,000. This effectively depleted the entire liquidity pool associated with the token.

⚠️ RUGPULL ALERT ⚠️
Unfortunately, the token $XRP (https://t.co/ZFkJZZ6CBC) on #BNBChain has experienced a #rugpull.
Address 0x86B7F5…72095c4E sold a total of $162K, completely depleting the liquidity pool.
The deployer minted a significantly larger number of tokens than the… pic.twitter.com/EkdvhfCNNm

— AegisWeb3 (@AegisWeb3) August 26, 2023

The underlying issue stemmed from the creator of the token, who generated a significantly larger quantity of tokens than the total supply initially designated. This discrepancy was exploited when the creator executed a rug pull. The creator did so by essentially liquidating 1 quadrillion tokens, which led to the accumulation of approximately 747.7 $BNB tokens. The resulting funds were subsequently transferred to another address, 0x98ECcc…F916F900.

This rug pull incident on the BNBChain could further amplify negative sentiment around the BNB chain, especially given the recent intense regulatory scrutiny imposed by U.S. regulatory bodies. The incident might also raise concerns among investors and users about the security of the BNB network.

Overall sentiment

These events could also undermine confidence in the BNB chain’s ability to prevent fraudulent activities and protect users from such incidents. The timing of this event could contribute to the perception of increased risk and potentially erode trust in the overall ecosystem.

Realistic or not, here’s BNB’s market cap in BTC’s terms

At press time, the weighted sentiment around BNB chain was negative. The negative weighted sentiment implied that negative comments outweighed the positive ones around the network.

In contrast the price of BNB saw some recovery during this period. According to Santiment’s data, BNB’s price grew from $206.99 to $216.88.

Source: Santiment