- Users who had WEWE on the BNB Chain saw a price drop due to a possible rug pull.
- The negative sentiment and declining user activity threatened BNB’s reputation.
Recently participants within the BNB Chain [BNB] got caught in what looked like a back pull. This unfortunate incident involved the WEWE token, leaving users struggling with a significant 98.82% price drop.
This is what happened
On January 15, AegisWeb3, a cybersecurity company, noticed a significant sell-off at multiple addresses within the BNB chain, raising concerns among users.
???? Price alert! ???? #Slip The price of $WEWE on the #BNBChain has experienced a drastic drop of 98.82%.
TOKEN CONTRACT: ????0x10412Dbac4ba7C1aFe2F019EBccE554C6bc547DfJust 25 minutes ago, several addresses initiated a significant token sell-off, causing this sharp drop.… pic.twitter.com/sODacSqSuX
— AegisWeb3 (@AegisWeb3) January 15, 2024
This unfortunate incident could potentially cast a shadow on BNB’s reputation, impacting users’ trust in the network.
The abrupt drop in WEWE’s price underlined the vulnerability of certain tokens within the BNB ecosystem, prompting a reevaluation of the platform’s security measures.
Word on the street
AMBCrypto’s analysis of Santiment showed that weighted sentiment around BNB had declined, with negative comments outweighing positive ones.
This shift in sentiment may indicate growing concern and skepticism among users, potentially impacting BNB adoption and overall market perception.
Source: Santiment
Furthermore, the decline in the total number of active users within the BNB chain, as evidenced by Token Terminal data, suggested a possible withdrawal from the platform.
A 6.4% decline in network growth within 24 hours raises questions about user satisfaction and interest in the aftermath of the carpet pull.
The financial aspect of the carpet pulling is also worth mentioning: turnover within the BNB chain fell by 24.2% in the same period.
Source: Token terminal
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BNB Chain has a history of rug pulls
This carpet pulling is not an isolated incident and adds to a series of similar events across the BNB chain. Previous rugpulls related to the OMNI token on December 25 and a meme coin on August 27 contributed to a disturbing pattern.
Despite these challenges, BNB’s price showed resilience, growing 3.73% to $312.92 at the time of writing. The positive price action can be attributed to several factors, including the overall bullish sentiment in the crypto market.