Polywhale Team Abandon $100 Million Project Amid Scam Allegations

Key Takeaways

  • Polywhale Finance, the first yield farm on Polygon, has abandoned the project and withdrawn over $1 million in tokens.
  • The team said they were quitting due to bad tokenomics and poor market conditions, a claim dismissed by others.
  • Community members describe the incident as a “soft rug,” a fraudulent exit scam in which project founders sell own tokens on the market.

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Polywhale Finance, the first-ever yield farm on Polygon has been abandoned by its founding team amid rug pull allegations.

Polywhale: Another Yield Farming Exit Scam?

The team has stated in an official statement that they are moving on due to bad token economics and market conditions.

“We have decided that we will no longer be developing the project for multiple reasons,” the team wrote in their final note amid allegations of an exit scam from community members.

Polwhale statement
Source: Telegram

Even though the team blames its exit on tokenomics, there are indications of malicious intent. The official Telegram chat group has been deleted and there is a consensus among community members that the project was a potential scam.

Community members describe the incident as a “soft rug,” a situation when project founders abandon a project after dumping their own tokens on the market in exchange for stable coins.

Polywhale Finance was launched in April 2021 by an anonymous team. It functioned as a yield farm, offering its users a chance to make incredibly high returns on their deposited funds.

Users could stake various tokens including Matic, Quick and several other tokens to earn as APRs as high as 1000% in the native token called Krill.

Up until last week, Polywhale had a total value locked of over $100 million across liquidity pools as well as other…

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