Dogecoin Copycat On BNB Chain Tanks 99% In $4.5M 'Soft Rug Pull'

Dogecoin (CRYPTO: DOGE) copycat Teddy Doge (CRYPTO: TEDDY) has orchestrated the latest DeFi rug pull, according to blockchain analytics firm PeckShield.

What Happened: PeckShield alerted users that the Teddy Doge developers likely pulled off a “soft rugpull,” making off with $4.5 million worth of investor’s tokens. The price of TEDDY dropped 99.4% after the news made rounds.

The deployer deployed the contract and transferred a large quantity of $Teddy to 0xdbe8ef79a1a7b57fbb73048192edf6427e8a5552, then pump and dump the price of $Teddy.
PeckShield has detected TeddyDoge may be related to Half Pizza ($PIZA) pic.twitter.com/bDWYX7ceOG

— PeckShieldAlert (@PeckShieldAlert) July 25, 2022

A rug pull is a scenario when the token’s creators lure unsuspecting users into investing their crypto token only to pull liquidity and disappear with investor funds. Blockchain analytics firm Chainalysis estimated that DeFi rug pull took over $2.8 billion worth of crypto from investors in 2021.

TEDDY is a token built on Binance's BNB Chain (CRYPTO: BNB). In the case of this particular rug pull, the developers themselves were in control of the liquidity pools and were able to take hold of 30 billion TEDDY tokens.

These wallet addresses were then observed exchanging TEDDY for Wrapped BNB (CRYPTO: WBNB). They were then seen converting this into 10,000 BNB and BUSD (CRYPTO:  BUSD) — Binance Chain’s native token and Binance’s issued stablecoin.

“Don’t buy tokens for now. We have closed the cross-chain bridge and are in the process of fixing it,” said admins of Teddy Doge’s Telegram group.