MonitorChain Detects RusGas (RGS) is Minting Billions of Tokens and Dumping Tokens on Investors
MonitorChain was able to detect a new potential scam linked to RusGas (RGS). According to some reports, RusGas is already minting billions of tokens and diluting the value of the tokens that investors have.
The company raised around $2.2 million during its Initial Coin Offering (ICO) from investors and it seems that it is already trying to scam them. Born as a project that wanted to transform the gas industry, on November 28 some suspicious token minting was detected. According to MonitorChain RusGas minted 100 billion tokens, diluting the original supply that was 10 billion tokens.
However, the minted tokens were sent to the Russian exchange Crex24 and sold there, affecting the price of the virtual currency. The reports show that 850 billion new RGS were minted within the last few days. At the moment, there are 220 billion sell orders outstanding in the exchange.
Seth Hornby, Zenchain Inc. CEO and co-founder of MonitorChain commented that they were able to catch a potential exit scam when such a large number of RGS tokens were minted. Additionally, they saw that these tokens were dumped on the Crex24 exchange.
Additionally, one of the analysts working at MonitorChain started to take a closer look at the smart contract backing this token.
He said about it:
“We couldn’t find any vulnerabilities, but one thing that we did find is that there was a function to disable the minting of new tokens, and they never disabled it.”
According to Hornby, perpetrators may be actively trying to deceive token holders. For him, the perpetrators of this scam are the team members that never put an end to the token minting. The sell-off created by these individuals in the market made of it a worthless token which is being traded for just a billionth of a Bitcoin.
Hornby says that Crex24 is complicit of this scam because knowing that there is something wrong going on with this token they did not pause trading or delist the token from the platform. Additionally, he was able to contact the exchange and the answer he received was that ‘token teams know best.’
It seems that the number of tokens created continues to grow. Hornby mentioned that in the last few hours around 500 billion tokens were also minted. Hornby has also stated that this is the most blatant scam that he has ever seen in the market.
Cryptocurrency projects have expanded in the market over the last years. Initial Coin Offerings (ICOs) and investment companies promising skyrocketing results in a short period of time are just ‘too good to be true’ investments.
Several scams have been affecting the whole cryptocurrency market since the very beginning. Regulatory agencies around the world and different governments are trying to implement regulations to improve the current ecosystem.
Users must perform an in-depth investigation before investing in a specific project in order to find major red flags. If there are new crypto investors, the best what they can do is to place their funds in already established virtual currencies and projects.