PAID Network, an Ethereum-based launchpad promoted heavily by Youtube crypto shiller Ivan on Tech, recently lost investors $100M through a "mint" exploit. The protocol's smart contract suddenly created a huge amount of PAID tokens and dumped them on the market, destroying the price without allowing any real investors the opportunity to sell.
Mint functions are usually insider jobs, because smart contracts must be programmed with this function intact. It cannot be put there by an outsider once the contract is deployed, and only people with access to contract ownership can actually use it even if it is there.
This implicates the PAID team and also Ivan on Tech, who heavily promoted the coin on his Youtube channel to hundreds of thousands of people. Ivan admitted his personal friendship to the CEO of PAID, some fat dumbass named Kyle.
PAID Network is an investor in many other projects. Before investing in anything, you definitely want to check the partnership logos on the page to see if they are affiliated.
(No, I wasn't invested in the project, so this isn't salt. This is me understanding from the beginning and telling you these Youtube shills are not to be trusted.)
WarOnRugs issued a warning about PAID Network weeks ago, saying the protocol minted tokens to wallets that did not participate in the presale. Sounds like a tactic to pay off Ivan on Tech for promoting the project. Ivan is known for this kind of underhanded dealing. If you want to avoid situations like this, WarOnRugs is a good Twitter to follow.
You might say, how can PAID rug on people and still run a legit company? Who would risk their reputation over a few million (lol)?
It's actually quite easy to scam and be legit. After the rug pull and payout to Ivan, the Fatass Kyle and whoever else, Ivan and Co. just says it's a mistake. They migrate the smart contract and do other PR to make it seem as though it was a mistake. Eventually, new buyers come in and erase the losses other buyers took, so it looks like nothing happened if you hold long enough.
And the structure of PAID is that you have to hold PAID tokens to get an allocation for the next project. So basically everyone is stuck holding unless they want to sell right now for an 80% loss.
You should have expected this from Ivan on Tech. If you got caught in this rug and hold PAID long enough, you will likely recover your loss, because PAID has the marketing muscle to get new buyers in. But don't be surprised if you're caught up in some other market manipulation later on. This group of shysters has shown they don't care whatsoever about scamming you to get rich.
Just another little tip — Elliotrades also has a history of rug pulling, so I'd watch out for Superfarm as well. Just sayin.
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