Cryptocurrencies

WhaleFarm Crash Is Latest Too-Good-To-Be True DeFi Collapse

  • Exit scams known as rug pulls are becoming more prevalent
  • DeFi Pulse Index is down more than 50% from recent high
Photographer: Andrey Rudakov/Bloomberg
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On Monday, something called WhaleFarm was trading above $200 on crypto exchanges. By Wednesday, it was worth close to zero.

It’s the latest easy-come, easy-go DeFi project to raise eyebrows, after its crash likely wiped out millions in value in a matter of hours, prompting Twitter lamentations on its obliteration and warnings from market pros on avoiding too-good-to-be true investments.