Lena Network suffers $2.9m rug pull, CANDY token value plummets

The Lena Network’s CANDY token lost over 95% of its value today following a rug pull of 753 Ether, or approximately $2.9 million.

The value of the CANDY token plummeted more than 95% to a low of $0.0068, down from its daily peak of $3.08. This decline occurred after reports surfaced that the network’s initiator had moved 753.11 Ether to a wallet linked to the OKX exchange. The transaction was recorded on Etherscan on Mar. 6.

The rug pull occurred shortly before Lena Network announced it had transferred the token contract’s ownership rights, signaling a departure from further development or control. The fundraising event for CANDY, termed an initial farm offering, successfully generated over 850 ETH, around $3.2 million, concluding on Mar. 3. 

The token was launched on Mar. 6 and immediately experienced a steep decline in value. Lena Network noted that various strategic partners and investors, including DWF Labs, Alchemy Pay, and Draper Dragon, backed its launch.

However, Lena Network has denied the allegations of being an exit scam and emphasized its commitment to trust and transparency. According to the network, the liquidity pool has already increased to bring bank stability into the ecosystem. The platform has also locked CANDY’s liquidity pool.

The incident underscores the escalating security challenges in the cryptocurrency market. In 2024, the sector has already seen losses from security breaches and scams exceeding $200 million, representing a 15.4% increase from the same period in the previous year.

This rug pull emerged after another alarming development where OrdiZK, a protocol designed to facilitate cross-chain transactions, was implicated in an exit scam, resulting in investor losses of $1.4 million.