Trust no one: Founders of once-$50 million Ethereum coin "rug pull" users

Relative to the number of legitimate projects launching, it appears that there are a large number of scams.

This much was made clear when a DeFi project that was live for nearly two months "Rug pulled" its users despite building an aura of trust over many months.

The coin pertaining to this project has since plunged by 99 percent, shocking many investors.

A two-month-old DeFi project plays the long game, scams users.

CoinBreeder/CBDAO, whose token was BREE, was one such project.

CoinBreeder was a multi-faceted Ethereum project that included features related to non-fungible tokens and staking.

For some reason, the project saw immediate success: just weeks after it launched in early August, BREE tokens had an aggregate market capitalization of $50 million - quite the feat for a project that just launched.

There was a great deal of Ethereum token traders on Twitter commenting on the project, noting that they thought it was a potentially good bet.

It's worth noting that CBDAO is far from dead. There are some users that are trying to reclaim what there is left to try and turn the project into a success.

There have also been other longer-standing projects such as HatchDAO that have scammed their users after building up an aura of trust over many weeks.