Notcoin Fake Ethereum Token Rug Pull

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Notcoin Logo/Homepage/Marketing

Notcoin is a token with a unique launch where it was given out through engaging with a mobile application. The full supply of Notcoins was fully released initially. Their marketing runs through various Telegram groups and other entities. While Notcoin is run through the TON blockchain, a fake version of the token was created on the Ethereum blockchain. $281k worth of liquidity was built up in the liquidity pool before it was all dumped for ethereum.

About Notcoin

"Probably nothing"

"in 3 months 35m people joined Notcoin" "and became the community"

"with 53,613 Telegram communities squads"

"so frens, no it is your tuen to find out what Notcoin really is"

"you can explore, you can play, you can contribute, you can earn, buy or sell"

"Notcoin is what you want it to be"

"Notcoin is different: no investors, no big whales, no shady schemes, zero $ spent on marketing, pure community driven growth to 0.44% of the Earth population (still love the beauty of this number). The biggest influencer still has 0.02% of all tokens, all the people heavily contributed during the last 6 months were rewarded with <0.25% total. You can see from the Notcoin Vouchers how decentralized it is: around 300k people issued 800k Vouchers and generated $25M+ volume via P2P sales."

"Notcoin doesn't pretend to be something. Everyone is tired of the shill "buy this, buy that, new gem, alpha" — we say "it's probably nothing" and never overpromise. Better to build value than create perception. In the long run, this is the only choice actually."

"From the launch on the first day of 2024 year, the hypergrowth with zero marketing, to the listling on Binance and crazy distribution. Notcoin doesn't need to obey the existing crypto market expectations. It can be anything."

"It is clear that a large ecosystem can only grow if participants create and attract value to the ecosystem. So we applied positive-sum approach in every step: donate to Pavel Durov & Telegram? get x2 back. You choose to "split" in the Not Dilemma? You win. Do more to get more. Win-win as a core fundamental."

"by building models that work. Notcoin is aiming to ever-growing mechanics like explore projects to earn Notcoin from the market, or play games that create their own value and ecosystems. Math never lies." "Notcoin is not [a] channel, is not the team, is not a token. Notcoin is a way of doing things, shared by thousands of communities, millions living souls."

"Notcoin originated as a simple, free-to-play game on Telegram, leveraging the massive user base of the messaging app to attract participants. The game was designed to be easily accessible, where users could earn Notcoins by performing simple tasks like tapping on the screen of their devices. This “tap-to-earn” mechanic quickly went viral, amassing millions of users globally. At its peak, the game had 35 million users and more than six million daily active users (DAUs)​.

The simplicity of the game, combined with its integration into the popular Telegram platform, made it an instant hit. Users could mine Notcoins without any initial investment, making it a low-risk entry point into the world of cryptocurrencies. The game’s success can be attributed to its fun and engaging nature, coupled with the potential to earn real cryptocurrency."

"The core feature of Notcoin is its tap-to-earn mechanic. Users earn Notcoins by tapping on a virtual coin displayed on their screen. This simple yet addictive gameplay loop incentivizes continuous interaction. Players can also purchase boosts to enhance their earning potential, such as increasing the rate of Notcoin rewards per tap or enabling an auto-tapper to maximize earnings without continuous manual effort​."

"Notcoin has fostered a strong community through its gameplay and social features. Users can form teams, invite friends, and compete in leaderboards, adding a competitive edge to the experience. This community aspect has been crucial in maintaining user engagement and driving the viral growth of the project​."

"Notcoin’s tokenomics are unique in the crypto space. The total supply of NOT tokens is capped at approximately 103 billion, with the initial supply set at 102,719,221,714 tokens. Unlike many other cryptocurrency projects, Notcoin released 100% of its token supply on day one, ensuring a fair and transparent distribution. This approach eliminated the need for a vesting schedule, which is commonly used to prevent excessive selling pressure​."

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

"Fake Notcoin on ETH is suspected of a rug pull, and the current token price has dropped by 100%."

Key Event Timeline - Notcoin Fake Ethereum Token Rug Pull

Date	Event	Description
May 15th, 2024 2:24:11 PM MDT	Fake Token Created	The fake Notcoin smart contract is deployed.
May 16th, 2024 2:50:23 AM MDT	Token Dump Transaction	1,645,040,633,338,481.951896609112107538 of the fake Notcoin tokens are exchanged for 93.476193304857095192 ETH using Uniswap.
May 20th, 2024 4:23:51 AM MDT	SlowMist Analysis	SlowMist starts up an analysis of the DexTools listing, based on their analysis.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $281,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

"Fake Notcoin on ETH is suspected of a rug pull, and the current token price has dropped by 100%."

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.