SPCT token plunges 43% amid allegations of a rug pull

Spectra Chain’s native token, SPCT, experienced a significant decline, plummeting 43% on Friday morning following emerging allegations of a potential rug pull by its team.

At the time of writing, the token was trading at $0.0094, marking a 27% fall within the last 24 hours.

Previously reaching an all-time high of $0.05065 on April 9, 2024, the current price of SPCT is now 81.66% lower than its peak.

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, lower transaction costs, and enable the development of complex smart contracts. The ecosystem also comprises a Chain Explorer for enhanced transparency and security, a Decentralized Exchange (DEX), and an NFT Marketplace for digital asset trading.

However, the community’s confidence was shaken when several SPCT token holders reported on social media platform X that the official Telegram channel of Spectra Chain had been abruptly closed.

Further aggravating the situation, a user identified as ‘lean’ alleged that the founders of Spectra Chain were previously involved with 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 might soon face a collapse, particularly if the team’s promised transparency or “team dox” is proven to be deceptive or indefinitely delayed.

Per a Dec. 21 Medium post by a private investigator, Michael Gugliotti, VC Spectra has been evading multiple launch dates and adjusting their token goals on their website, which further compounds the mistrust.

Gugliotti mentioned, “After an interaction with someone claiming to be the accounts manager, a client of mine found their account suspended and all forms of communication cut off. We have since reported this as a fraud to agencies including the FBI, FTC, and SEC.”

This situation is not isolated within the crypto industry. For instance, on April 15, Grand Base’s token value dropped nearly 100% following an incident where the protocol’s deployer minted millions of new tokens.

The sudden increase in token supply led to suspicions of a rug pull, which were later attributed to an exploit by the project’s spokesperson via a Telegram channel statement.