Meme token Teddy Doge loses 100% of value in 24 hours

Wallets connected to the Teddy Doge project (TEDDY) dumped tokens worth more than $4.5 million on July 23–24, PeckShield researchers said. The asset price on the BNB Chain network fell to zero.

#PeckShieldAlert #rugpull TeddyDoge @DRAC_Network is soft rugpull. $Teddy has dropped -99.4%. The assets currently sit in https://t.co/3zu55iZAWX (accumulatively receive ~10k $BNB & 2m $BUSD) and are slowly transferred to @Binance pic.twitter.com/I48dWkLIOE

— PeckShieldAlert (@PeckShieldAlert) July 25, 2022

Addresses linked to the TEDDY exchange contract received roughly 10,000 BNB ($2.5 million) and ~2 million BUSD. The funds were gradually transferred to the Binance exchange.

“The deployer deployed the contract and sent a large amount of TEDDY to address 0xdbe8ef79a1a7b57fbb73048192edf6427e8a5552, and then pumped and dumped the token price,” the experts explained.

They described the incident as a soft rug pull. It is a fraud scheme in which the team abruptly abandons the project, sells all tokens and withdraws liquidity.

CEO Sooho Ji-su Park, in comments to CoinDesk, agreed with PeckShield’s assessment:

“Rather than tampering with code, it appears that assets allocated to the manager’s account were distributed and sold in bulk. This isn’t a hack; it’s a rug pull. But it’s unclear whether they abandoned the project, so it could be called a soft rug.”

The project administrators said the incident stemmed from an issue they are examining. The developers also temporarily halted work on the cross-chain bridge.

We temporarily closed the cross-chain bridge.

— DRAC_Network (@DRAC_Network) July 25, 2022

“We are actively discussing with the exchange the next step to replace TEDDY with new DRAC tokens, and we apologize,” they wrote in the next tweet.

According to CoinGecko, in the last 24 hours the token price fell by 99.9%. At its February 2022 peak, the asset traded at $0.003. TEDDY’s main trading venues are XT.COM and BKEX, with roughly $8 million in daily trading volume.

In the second quarter of 2022, total losses from hacks and fraud across crypto projects reached more than $670 million, according to Immunefi.

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