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The Lena Network's liquidity protocol has suffered a blow after its Candy token experienced a dramatic 87% drop, resulting in losses of approximately $2.9 million due to a rug pull incident.
Data from Etherscan revealed that the Lena Network deployer address transferred 753.11 Ether to an address associated with OKX exchange on March 6, at 2:30 am. Interestingly, the incident occurred just hours before Lena Network officially renounced ownership of the Candy token contract.
Important announcement 🚨
— LENA ⚡ IFO Launching (@LENA_Network) March 6, 2024
We've taken a significant step forward in ensuring our project's trust and decentralization - we've officially renounced ownership of our token contract.
This move is all about fostering a safer and more community-driven environment. Making things… pic.twitter.com/hoxbpszWuR
Ambitious Launch Turns Sour
Lena Network's ambitious Candy Initial Farm Offering (IFO), which concluded on March 3, raised over 850 ETH ($3.2 million). The token's much-anticipated debut on March 6 quickly turned into a disappointment, with the price plummeting from a daily high of $3.08 to a mere $0.38 by 12:48 a.m. UTC, based on Dexscreener data.
However, Lena Network recently announced an AMA space to address the community's concerns, scheduled for March 7, 12:30 AM UTC.
🚨 POST IFO LENA AMA 🚨
— LENA ⚡ IFO Launching (@LENA_Network) March 6, 2024
Clearing the Air: AMA on Recent Concerns
In light of recent discussions and concerns raised by our community, we're hosting an AMA to address all questions head-on. A lot of Fear, Uncertainty, and Doubt has been spreading in the space.
We understand the… pic.twitter.com/8pVfwh0niY
A Broader Trend
The Lena Network incident adds to the growing trend of security concerns within the cryptocurrency space. In 2024 alone, losses from hacks and rug pulls have exceeded $200 million, marking a 15.4% increase compared to the early months of 2023.
The Lena Network incident follows closely after another concerning incident. OrdiZK, a cross-chain bridging protocol, is accused of orchestrating an exit scam that left investors with substantial losses totaling $1.4 million.
CertiK's investigation revealed that the protocol's deployer account unloaded a staggering 489 million OZK tokens on March 5, resulting in a catastrophic 98% plunge in the token's price.