the Merlin token has been exposed as a 100% rug pull. The token’s contract was approved to allow for an infinite amount of funds to be drained to a specific address, likely belonging to the deployer. Despite the Certik audit of the Merlin token, no vulnerability was detected that could lead to such an exploit.
What is a Rug Pull?
A rug pull is a form of cryptocurrency scam where the creators of a token suddenly drain the liquidity pool, stealing all the investors’ funds. This type of fraud is particularly prevalent in the meme coin space, where tokens with low liquidity and high volatility are often created as a joke or for fun. Rug pulls are a real threat to investors, and they can result in significant losses.
Merlin Token Vulnerability
Merlin token was launched with great fanfare and hype, but it has turned out to be a massive disappointment for investors. The token’s vulnerability was discovered when it was found that the contract approved an infinite amount of funds to be drained to a specific address, likely belonging to the deployer. This vulnerability was not detected by the Certik audit, which gave the Merlin token a clean bill of health.
Withdrawal of LP Tokens
Investors can withdraw their LP tokens from the Merlin token contract, but they cannot remove the liquidity from the pool. This is because there are no funds left in the pool, as the deployer has drained all the liquidity. This is a clear indication of the vulnerability of the Merlin token and the danger of investing in meme coins.
