DeFi Project Blur Finance Rug-Pulled For $600,000; BLR Token Crashes 99%

Another DeFi project has possibly rug pulled its investors and over $600,000 has 'vanished' from the platform. BLR, the governance token of Blur Finance, has crashed almost 99% in the last 24 hours.

Blur Finance was a yield aggregator that aimed to use different decentralized finance (DeFi) protocols and strategies to maximize yields on the funds deposited by users. The project was based on Binance's BNB Chain and migrated to Polygon (MATIC) network as well.

The creators and developers of Blur Finance seem to have abandoned the project and the Twitter handle of the DeFi project has been deleted. Blockchain security firm PeckShield confirmed that the developers have rugged the project and made away with $600,000.

Rug pulling refers to when the project creators dump their platform's token (in this case the BLR token) on the investors while also stealing all the funds stashed in the project's treasury.

Blur Finance's website is returning an invalid certificate while the link to its Discord channel gives an "invite invalid" message. According to CoinMarketCap, the price of BLR token as of 2:08 am ET was $0.0006306; its all-time high was around $0.07, or 7 cents, according to Poocoin.

The all-time high was hit on Aug. 4 and the token crashed almost 99% on Tuesday. This was possibly the actual time of the rug pull.

The wallet data shows that there are around 756 holders of the BLR token, and these folks might be wondering what happened to their investments.

Such scams are becoming all too common in the crypto industry. Recently, Polygon-based game Dragoma was rug-pulled in a similar fashion and the creators stole all the funds on the platform. The DMA token was reduced to nothing in a matter of minutes.

In the light of such rug pulls, on-chain analyst and multiple rug pull survivor ZachXBT advised new investors that it is "important to educate yourself about the [crypto] space as much as possible and as cliche as it sounds if it sounds too good to be true it most likely is."