Crolend Exit Scams Its Users

chekohler (70)in #yiyl • 2 years ago

In todays edition of YIYL, (You Invest, You Lose) we take a break from all the drama and enjoy an old favourite, the basic exit scam. It's been a while since I covered one of these and you could be mistaken that they no longer happen because media coverage about these shitcoins does dry up when there are bigger stories to deal with that get the clicks.

Exit scams have never gone away, they continue on but because exit scamming for 100k - 1 million doesn't seem like a big deal when billions are lost in a year in the wider shitcoin space, people tend to look down on it but it doesn't mean people aren't getting hurt and stolen from with these scams.

The issue for me is how do you even find these shitcoins to invest in there is so many other scams with bigger budgets that capture most people like the Hex or XRP rug pull or the solana rug pull, who have all wrecked so many people. I never thought the idea of finding an "alt gem" would still be around after all this time. The 1000x coin lol and I guess if you promise people 1000x you can always find a few suckers willing to be the yield for the ponzi.

What Is Crolend?

CroLend is a so called DeFi lending protocol that lives on Cronos. Crolend claimed it would be better solution for lending and borrowingwith efficiency while creating a transparent trading market. While it kinda did that it borrowed its customers money and turned their wallets transparent :P

Whenever I see this absolute word salad garbage descriptions these shitcoin projects have for themselves I wonder who falls for this? Who reads that description and goes man, this sounds legit let me throw in a few thousand dollars, who are you and why haven't you seen someone regarding these mental issues?

Crolend were able to get listings on CMC, CoinGecko, Coinbase and even claimed to have an audit done on their copypasta smart contract. I guess that is the going rate for social proof these days and all you need to scam a few people out of their money.

Do not collect $200

So upon launch CroLend were pumping out content on their website, medium and Twitter and were able to drum up some interest in their project. According to DeFiLlama, the Total Value Locked on CroLend Finance peaked at around $600,000 with the token trading as high as $0.00192539.

That was enough for the developers to call it quits and shut down operations, they purged their social accounts and The website has been deleted, along with draining the entire pool to 0.

https://twitter.com/CertiKAlert/status/1598692727629168640

Talk about the price

There is not much to say on the price front since the project lasted less than two months before rug pulling their LPs and making off with the cash, but you can see from the graph below, they didn't plan to ride their luck and by the time it peaked out slightly at the first dump, they took their chance to secured profits.

Screenshot 20230103 at 08.19.00.png