ListingSpy, a website dedicated to exposing ICO/Airdop scams has retracted their analysis of Venom.Network project. The analysis, that was published at https://listingspy.net/token/pancakeswap/venom-network-venom/0x3d9e225c101a6a052685151d72d31354de085cb8
The analysis was neither deep nor revolutionary. However, it did confirm that despite their significant marketing efforts, Venom.Network and Venom.Foundation exhibit signs of a potential scam. ListingSpy classifies Venom as a project with a high risk of rug pulling.
A rug pull is an insidious form of cryptocurrency scam where a team orchestrates a deliberate manipulation of their project’s token value, only to vanish with the invested funds, leaving unsuspecting investors with a worthless asset. This fraudulent manoeuvrer occurs when deceitful developers introduce a fresh crypto token, artificially inflate its price, and swiftly extract maximum value from it, all while planning their exit strategy. As the token’s value plummets to zero, the scheming individuals abandon it completely. Rug pulls are classified as both exit scams and exploits within the realm of decentralized finance (DeFi).
Very low liquidity of the project’s token is a key to successfully executing the scam. Additionally, the fact that Venom can be minted in nearly arbitrary quantities is also important.
There is another disturbing finding: Venom.Network, despite positioning itself as decentralized, is, in fact, completely monopolized. Ten of the biggest holders control 99.997% of the total mass. This is in stark contrast to ye olde bitcoin, where the share of the largest holders is less than 1%, and the inventor of bitcoin is presumed dead.
Some information listed on ListingSpy has caught the attention of the PR department of Venom Foundation, leading them to arrange the retraction of the article.