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Allegations of ‘Rug Pull' Arise After Gemholic Team Withdraws $3.5M in Previously Locked ETH



What is Zksync?
Zksync, short for Zero Knowledge Sync, is a layer-2 scaling solution for Ethereum that uses zero-knowledge proofs to improve transaction speed and reduce gas fees. It allows users to transfer any ERC-20 token or ether quickly and cheaply, making it an attractive option for decentralized finance (DeFi) users and traders.

The Rug-Pulling Incident
The Gemholic team's withdrawal of nearly 1,000 ethereum tokens came as a surprise to many in the crypto community. The team had previously locked these tokens in a smart contract, which was designed to release them gradually over time to fund the project's development. However, the sudden withdrawal of these funds has raised suspicions of a rug-pull - a type of scam in which developers abandon a project and take all the locked funds with them.

Solidproof's KYC Process
Solidproof is a blockchain security firm that offers KYC services to projects and exchanges in the crypto space. Its process involves verifying the identities of project developers and ensuring that they are not associated with any fraudulent activities. However, the fact that the Gemholic team completed this process and still carried out the rug-pull has raised questions about the effectiveness of KYC in preventing such incidents.

Impact on Crypto Community
The rug-pulling incident by the Gemholic team has caused a stir in the crypto community, with many questioning the security and trustworthiness of projects and exchanges in the space. It serves as a reminder of the risks involved in investing in the volatile and unregulated world of cryptocurrencies. As a precaution, it is important for investors to do thorough research and due diligence before investing in any project or platform.

Trending Hashtags and Crypto Tickers
#Zksync #Gemholic #Ethereum #DeFi #RugPull #Solidproof #KYC #CryptoCommunity #Cryptocurrency #Investing #DueDiligence


Sentiment Result : Negative

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