DistX DeFi token crashes after project founders drain liquidity pool

The DistX platform’s market capitalization for token sales collapsed in a matter of hours, from $1.5 million to less than $15,000 after the project was closed and its founders withdrew funds from the Uniswap liquidity pool.

Market participants view this as yet another example of the so-called rug pull. The term denotes the practice of inflating the value of a token in a liquidity pool, followed by a sharp withdrawal of funds, leaving other providers with devalued assets.

The creators promised DISTX holders not only access to participate in token sales, but also 2% of the volume of each issuance if a certain threshold is reached.

At the platform’s launch in August, the DISTX price rose to $0.25. In the past month, fluctuations occurred in the $0.06-$0.08 range.

As of publication, the DISTX token is valued at less than $0.0004, with a market capitalization of less than $15,000.

Data: CoinGecko.

On Sunday, December 13, the project’s founder Adrian Daluz wrote in Telegram about the platform’s fourth token sale failure and the decision to close DistX.

“We are not removing liquidity; with the remaining company funds ($95,000) we will buy DISTX on Uniswap and burn them to help you, guys, cash out a higher amount,” he wrote.

In practice, as the anti-scam group WARONRUGS claims, only 36 investors out of 1,662 were able to exchange DISTX. The total did not exceed 170 ETH. Experts say it was likely Daluz himself, his family and friends.

ℹ️ It appears he refunded 170 ETH across 36 holders out of 1662 (understand by that mostly him, his friends and family) and left the rest of the investors absolutely rekt.

Tx: https://t.co/ge5QOmvmHa

ℹ️ He also took 22.2 ETH for himself as well.

Tx: https://t.co/Nx60BkeG5h pic.twitter.com/dbv2gakd1A

— #WARONRUGS❌ (@WARONRUGS) December 14, 2020

The head of the token listing platform TrustSwap, Jeff Kirdeikis, said he is in talks with Daluz and his team in hopes of finding a solution that would allow DISTX holders to recover part of the token’s value.

> @DistXio just closed their doors and left a lot of people with some heavy bags.

I’m in talks with their management and am hoping to create some sort of solution where $DISTX token holders can retain their value and live to fight another day, within a strong ecosystem.

— Jeff Kirdeikis (@JeffKirdeikis) December 14, 2020

As of publication, Daluz’s and DistX’s social media accounts were unavailable, and comments in the project’s Telegram were disabled.

In November, scammers created ’empty’ tokens, echoing two high-profile projects — Keep3r Network, founded by Andre Cronje of yEarn Finance, and cVault.finance. Their value likewise fell to zero.

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