Scam tokens and rugpulls taking advantage of the hype
Over the last few weeks there has been massive interest in the Arbitrum Network and the launch of the $ARB token. Unfortunately this has also brought the scammers out from their swamps to take advantage of unsuspecting investors.
Voila.money was a decentralized finance (DeFi) project that claimed to offer a yield farming platform on the Arbitrum Network. It promised users high returns on their investments and a way to earn rewards by staking their tokens.
All you had to do was buy their $VOILA token, hold it, and be rewarded with $ARB.
I looked closely at the project and came close to investing, but something didn’t feel right about it, or the team.
The project turned out to be a scam, and the team behind it rugpulled, which means they disappeared with investors’ money. Their website, Telegram group and Twitter account have all been deleted.
Rugpulling is a form of exit scam in which developers abandon a project after raising a significant amount of funds, leaving investors with worthless tokens and no way to recover their money.
In the case of Voila.money, the team had minted a large number of tokens and sold them to investors, then withdrew liquidity from the platform, causing the token price to plummet. This left investors with worthless tokens, and the team disappeared with the funds.
Investors who were caught up in the Voila.money scam learned the hard way that it’s important to thoroughly research and understand any investment opportunity before committing funds to it. They also learned the importance of being cautious when investing in new, untested DeFi projects that promise high returns.