$13 000 000 USD

JUNE 2021

GLOBAL

POLYGOLD FINANCE

DESCRIPTION OF EVENTS

PolyGold Finance is "[a]n innovative cryptocurrency investment and yield farming platform built on the Polygon/Matic chain that seeks to create an ecosystem with sustainable, long-term growth by putting deposit fees in low-risk investments. The profits from these pools will be used to fund staking pools for native tokens to yield other rewards (like USDC, WMATIC, etc.) Fixed supply of 69,420." "[T]he PolyGold you earn from staking other cryptocurrencies could also be staked for nearly 1500% APR. The earning potential from this protocol was quite impressive".

 

"On the face of it, the new finance dapp doesn’t look anything different from what we have seen over the last few months. At its core, PolyGold is a yield farming platform utilizing its own native token of the same name. In the same way as other DeFi platforms, in PolyGold users lock up their already held tokens to earn POLYGOLD or purchase POLYGOLD to then lock it up and earn."

 

"Spent weeks trying to find a decent yield farming project on Polygon and after a week of farming - @polygold_fi is the first since Polywhale that looks like it may have legs. APY’s still high and the token has a low supply with utility to mint more new tokens. Have a look at it."

 

"Yield farming dapp PolyGold has experienced tremendous growth in the past 7 days and suddenly dropped off the radar." "PolyGold has seen a surge in activity in the last 7 days leading to an almost 350% increase in transactions. Generated through 2,860 active wallets that handled over $13 million in transaction volume. But something’s not quite right."

 

"People stated the lead developer, known only as @Alex_PGF, had written a message indicating “it’s over” in the telegram chat group." "[P]eople who staked their crypto into the yield farming platform were very angry. Those who did not catch onto the rug pull fast enough could not withdraw their crypto as the website is no longer accessible. In addition, PolyGold's value completely tanked to worthless values. Some on the Telegram group hypothesized the developer sold all of his PolyGold and ran off."

 

"It appears to indicate that ‘early depositors’ can somehow get their funds back and as a goodwill gesture will also be refunded the deposit fee. In a nutshell, the dev is giving back the money to the early investors as they are the ones that helped give the platform liquidity in the first place. The other people are not so lucky. Looking at the stated TVL in the platform through various Twitter posts the apparent rug pull could be worth millions of dollars."

 

"Watched it happen in real-time in the Telegram channel as Alex pulled all the deposits out and declared it over. Price plummeted down to $15 or so as people were trying to get their money out as quick as possible. People lost six-figure investments."

 

"Looking at the token price it would appear an open and close case. Debuting at around $168 to then hit its ATH of $244 within the same day. Only to then plummet down to under $3 a few days later."

 

"It looked like the "early depositers", the people who provided initial liquidity, were able to get their funds back. That said, anyone who was not an "early depositer" was not so lucky. In addition, as I mentioned earlier, the Twitter and Telegram accounts no longer exist. As a result, the message above is now completely useless. If you check the polygold.finance now, it tells you to use vfat.tools to recover staked deposits."

An anonymous developer launched a token and yield farming platform, which offered investors an impressive return.

 

The platform founder then sold their tokens and shut down the service without notice.

HOW COULD THIS HAVE BEEN PREVENTED?

The majority of the losses were based on the security token, which decreased in price. All other tokens were able to be removed from the platform, albeit with additional technical challenge and other third party tools.

 

This would not be possible with known platform founders and not allowing security tokens for the general public.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

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