Spectra Chain's native token SPCT saw a significant drop, falling 43% on Friday morning following emerging accusations of a possible rug-pulling by its team.
At the time of writing, the token was trading at $0.0094, which is a 27% drop in the last 24 hours.
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The current price of SPCT, which previously reached an all-time high of $0.05065 on April 9, 2024, is now 81.66% lower than its high.
Spectra Chain, which recently launched its Layer 2 solutions on April 16, is known for its Proof-of-Stake consensus mechanism designed to improve scalability, reduce transaction costs, and enable the development of complex smart contracts. The ecosystem also comprises a Chain Explorer to enhance transparency and security, a Decentralized Exchange (DEX), and an nft Marketplace for digital asset trading.
However, community confidence was shaken when several SPCT token holders reported on social media platform x that Spectra Chain's official Telegram channel had been abruptly closed.
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To further aggravate the situation, a user identified as 'lean' twitter.com/notlean__/status/1776989834432663703″ target=”_blank” rel=””>alleged that the founders of Spectra Chain were previously involved in other projects known for similar fraudulent activities.
The user found apparent connections between the founders of Spectra Chain and those involved in VC Spectra, a project previously identified as a rug pull.
He went on to suggest that the project could soon face collapse, particularly if the transparency promised by the team or “team dox” is proven to be misleading or delayed indefinitely.
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According to a media report on December 21 crypto-pre-sale-scam-db908f485471″ target=”_blank” rel=””>mail According to private investigator Michael Gugliotti, VC Spectra has been evading multiple launch dates and adjusting its token targets on its website, further compounding mistrust.
Gugliotti mentioned: “After an interaction with someone claiming to be the account manager, a client of mine found their account suspended and all forms of communication cut off. “We have since reported this as fraud to agencies such as the FBI, FTC and SEC.”
This situation is not isolated within the crypto industry. For example, on April 15, the Grand Base token value fell almost 100% following an incident in which the protocol implementer minted millions of new tokens.
The sudden spike in token supply raised suspicions of a rug-pulling, which was later attributed to an exploit by the project's spokesperson via a statement on the Telegram channel.
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