A so-called rug pull occurred, where the token price is pumped, users also inject liquidity, and then the liquidity is withdrawn, leaving investors with nothing.
ArbiSwap offered low-fee cryptocurrency exchanges on its platform and advertised a 100% return of all income to ARBI holders, which likely generated a lot of interest in ArbiSwap among users.
Over the past 24 hours, the value of ARBI tokens, which belong to ArbiSwap, dropped from $1.5 to a fraction of a cent. Blockchain data shows that the developers minted 1 billion fake tokens.
They then exchanged these fake tokens for USDC and Ether at the expense of everyone who contributed cryptocurrency to the pool. That is, they created a token, gave it value, and then dumped it for real tokens that have actual value. That's the scheme...
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