Pal.tech Faces Rug Pull Rip-off Accusations, Liquidated $52 Million in ETH

Pal.tech is accused of rug-pulling its customers because it has liquidated $52 million price of ETH.

The group bringing the Pal.tech protocol, which as soon as was slated to be the subsequent massive social platform, is now accused of rug-pulling its initiatives’ stakeholders. Different accusations embody the group working a Ponzi scheme.

Pseudonymous crypto analyst @waleswoosh posted elaborately on X to focus on Pal.tech group’s actions over the months to again their accusations, beginning by saying, “Friendtech rugged.” They referred to as it a Ponzi scheme, referencing the way it advanced from a Web3 social media platform to an “advanced trading” protocol. Additionally they talked about how Pal.tech modified the terminology of their ‘shares’ idea to ‘keys.’ A Forbes article coated this, stating how the protocol determined to take action as a result of ‘regulatory uncertainty surrounding crypto.’ The keys—or shares—signify components of person profiles that different customers purchase to message them. These keys earn earnings through buying and selling charges.

As the recognition of Pals.tech reached virality, creators acquired on board and made super earnings. Concurrently, the group gained over “$60M USD in total fees.” @waleswoosh claimed that the group promised key holders “wild things,” like promising to divide half the airdrop quantity between them.

Whereas this occurred when Pals.tech surged in recognition, customers ultimately misplaced curiosity. Now, its native asset FRIENDS, and the platform’s keys have declined tremendously in worth.

Within the meantime, the platform’s group has constantly liquidated about 19,477 ETH, amounting to $52 million, between December 2, 2023, and June 11, 2024.

Pal.Tech Responds

Pal.tech responded to the accusations to reassure its person base, saying, “We have no plans to shutter or discontinue the friend.tech web app.” It additionally talked about that no additional adjustments may be made to its contracts, which a earlier announcement talked about. That announcement elaborated that Pal.tech’s group has modified its possession parameters to the Ethereum null handle.

Nonetheless, Pal.tech’s X account talked about, “Everything you know and use remains the same.”