Disaster Token Airdrop Leaves Crypto Investors Asking…WTF?

A bunch of people just threw hundreds of thousands of dollars into a faulty token airdrop liquidity pool. What masqueraded as free money turned out to be a bonfire for hasty investors’ capital. WTF happened?

Covered:

  • WTF Airdrop
  • The Lesson To Be Learned Here

WTF Airdrop

A recent token airdrop in the crypto space didn’t go quite as planned — instead of giving out a bunch of free money, the airdrop ended up taking away even more. The culprit is $WTF, an airdrop token that was supposed to get distributed to investors who provided liquidity to a pool on Fees.wtf, a simple website that reportedly shows users their total spending on the Ethereum blockchain by measuring gas fees.

Last Friday, the WTF token was released in an airdrop. Users were supposed to be able to claim WTF tokens as well as a “Rekt” nonfungible token (NFT) for 0.01 ETH. The Rekt NFT grants lifetime access to the pro version of Fees.wtf.

According to its Discord announcement, the initial launch planned to offer 100 million WTF, however, it didn’t quite go as planned.

apein’ isn’t about the money, its about apein’

— Jebus (@jebus911) January 14, 2022

Just five minutes into the airdrop launch, a bot drained a total of 58 Ethereum (ETH) from the pool, according to Etherscan. One unlucky Etheruem user hastily poured in 42 ETH, worth well over $130,000, however, as highlighted by Pentoshi, that liquidity pool held just $0.79 cents of liquidity at the time. Basically, there was nothing for the investor to take out for putting their money in.

This was simply poor management on the WTF team’s end. The developers had left the liquidity pool exposed, and due to the low liquidity, bots were able to take hold and manipulate the price of WTF to sell it for ETH.

By the looks of it, the failed airdrop seemed to have caused a lot of carnage for crypto investors.

The state of the $wtf drop pic.twitter.com/QBMUFwXGPH

— Blackout (@Bl4ack0ut) January 14, 2022

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The Lesson To Be Learned Here

I think there are a couple of things that we can take away from this unfortunate situation.

First, trust is scarce in the crypto space. For as many quality projects and honest teams that are out there, there’s an equal, if not, greater amount of imitators and scammers trying to take advantage of the space.

Second, never just throw a large sum of money into something without testing it at least once, first. There are countless stories of people mistakenly sending tokens to the wrong address, people entering seed phrases to give away their private keys, and more. Whenever you’re doing anything in crypto, it’s always smart to start with a small amount. See a fresh new token that looks like a good place to park your money? Perhaps start with a smaller initial position. See an airdrop supposedly offering you free money for providing liquidity? Maybe start with a small amount in the pool first to make sure you aren’t getting scammed.

In its current state, “Too good to be true” unfortunately describes a large portion of the crypto space. Despite all the top-notch projects and opportunities to safely make money success in crypto, there are sectors in the space that truly do behave like the “wild west.” While that doesn’t mean that crypto needs overbearing regulation from politicians, it does mean that it’s up to the investor themselves to weed through the noise and find quality projects.

You don’t say pic.twitter.com/jntYb7bdY4

— 𝕟 𝕚 𝕗 𝕥 𝕪 𝟙 𝟛 𝟛 𝟟.𝕖𝕥𝕙 – 🧤🐸🧤 (@nifty_1337) January 14, 2022

The post Disaster Token Airdrop Leaves Crypto Investors Asking…WTF? appeared first on CryptosRus.

This content was originally published here.

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