For all its benefits, the crypto industry has its challenges; hacker exploitations and scams often leave investors uneasy, and the latest occurrence is Tsuzuki Inu (TZKI) pulling the rug from under them.
It appears that increased regulation, encryption, and scrutiny did not stop Tsuzuki Inu (TZKI) from liquidating investor funds and running off with an enormous payday, reinforcing the doubts fueled by meme coins.
Tsuzuki Inu (TZKI) developers reportedly pulled all liquidity from its investors on early Monday, according to Twitter users who went scouring for information as to what had happened. The ERC-20 tokens were changed into 265 wrapped Ethereum (ETH) and subsequently to USDC, equivalent to around $1,157,125, as per the Etherscan transaction history.
Right around the time of the scam execution, Tsuzuki Inu (TZKI) took a dive of 97% in CoinMarketCap, and at the time of publication, it was trading at $0.0000000000018.
Having been available for trading since March 2021, Tsuzuki Inu (TZKI) positioned itself as a meme and gaming cryptocurrency with plans to launch play-to-earn options for users. In addition, a DEX wallet was to be launched having recently hosted a giveaway for ensuring that the coin was valuable and trustworthy. With locked liquidity, Tsuzuki Inu (TZKI) has a total supply of 1 quintillion coins.
Per the pictures of Telegram chats uploaded on Twitter by users, the creators were able to get around the function by requesting investors to swap their Tsuzuki Inu (TZKI) coins they were already holding for Tsuzuki Inu (TZKI) v2 coins by transferring them to a swap contract account.
You’re Speaking the truth brother, Nothing but the truth. I saw someone say liquidity is gone but then how tf would it still be at 12M MC on CoinGecko? Lol I think they’re wrong. Wasn’t TZKI supposed to be on SaitaMask anyway? I think a rug pull would be real bold.
— B A M B O O🎋 (@Tropic_Bamboo) November 21, 2021
The protocol’s Twitter account has been deactivated since, and its Telegram channel is still down. In the absence of updates, many investors that fell victim to the scam are going to Twitter to either complain or investigate what has happened, and others are seeking patsies and someone to blame for the scam.
@ShadowedEmbrac3 has been the main crypto influencer promoting Tsuzuki Inu (TZKI). Since the scam, the influencer has made a statement saying that he was just as clueless as everyone else and has been taken advantage of by the scammers, as the death threats going his way are increasing.
Many investors have gone so far as to even question the validity of genuine exchanges such as BitMart for listing such a coin, requesting reimbursement of their lost funds.
Being that I’m unable to contact. BitMart via email, I’m reaching out through social media. My concern is about the recent rug pull of Tsuzuki Inu. Will BitMart compensate it's customers that have purchased the coins in their exchange?
— Rich Torno (@RichTorno) November 22, 2021
Nonetheless, apparently, the Tsuzuki Inu (TZKI) team had already demanded that all withdrawals and deposits be halted by BitMart in advance.
— Erdal Torun (@Erdal_Torun_) November 21, 2021
Scams from tokens that appear to be harmless contestants have grown frequent at a time when the likes of Shiba Inu (SHIB) and Axie Infinity (AXS) are experiencing spectacular rises. The Tsuzuki Inu scam is uncannily similar to the Squid Game scam that shook the market a little while ago. Developers liquidated a total of $3.38 million as the token soared by more than 1000%.
Also read: America’s Crypto Mayors Bullish on BTC