Apr 2024 - Empower AI Token Rug Pull - $238k (Global)
"Empower AI is a decentralized non-custodial lending and borrowing protocol."
"Permissionless Infrastructure for Smart Money Management. We are the leading gateway to smart on-chain money managers, bringing maximised yields and optimal..."
"Empower AI Protocol is building the infrastructure to empowering the next generation of billions of investors to access sophisticated on-chain trading strategies in a fully non-custodial, trustless manner. We envision a future where all blockchain investors have access to sophisticated automated strategies on a scale comparable to traditional finance platforms."
"Empower AI Protocol brings its proprietary quantitative strategies on-chain, creating positions within narrow liquidity ranges. These constantly monitor price movements and strategically triggering rebalances that reduce Impermanent Loss while maximizing generated fees."
"Uniswap V3 brought in new ways of managing liquidity, yet we haven't seen any consumer-focused vaults adopting impartial strategies for this.
The key reason is the added incentives offered by these vaults. When a vault provides extra rewards beyond what's earned from the usual market-making activities, most investors prefer to channel their funds through the vault to capture these bonuses. This makes the vault a more appealing option compared to directly participating in the market-making process.
The dynamics of that will be that the vault will become a significant % of the pool. Hence, if the vault strategist were to remove liquidity and rebalance the exposure by swapping on the pool then there would be massive slippage as the vault itself was the significant % of the pool.
This is where we bring in our active liquidity management infrastructure which will be paradigm-shifting in making defi efficient."
"Our AMM vaults provide infrastructure for market makers and trading partners to run a wide array of strategies on top of concentrated..."
"We plan to merge the best features of both AMMs (Automated Market Makers) and RFQs (Request for Quote model) in a trustless and non-custodial"
"MAX TOTAL SUPPLY 100,000,000 EMPAI"
"50k+ buy volume detected Name: #EMPAI
0xf445a2E240C73cFaaf0654202157F9c5457E5F73
└─ Contract holds 0.023% of Token supply!"
"The price of Empower AI (EMPAI) on Ethereum has dropped by 100%. A whale 0xE4808...f3bA has dumped 1,000,000,000,000 EMPAI for about 66.44 WETH (valued at around $23,750)."
Further Analysis
Empower AI launched a token along with a website, Telegram, and Twitter account. Their token started trending with a large amount of volume, however the token was set up such that it could not be sold by most users. In the end, the liquidity of the smart contract was drained, netting the token creator 66.44 ETH, minus whatever their cost was of setting up the token. The website homepage and Twitter went offline. The Telegram and Docs section of the website remain online.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
Zest Protocol Lending Collateral Vulnerability > > < < Monad Fake Token Rug Pull
Sources/Further Reading
SlowMist Hacked - SlowMist Zone (Dec 31)
https://www.dextools.io/app/cn/ether/pair-explorer/0x27d6f3d95e4888e1eacd19b200abec9089153a44?t=1713102750687 (Dec 31)
Ethereum Transaction Hash (Txhash) Details | Etherscan
(Dec 31)
Empower AI (EMPAI) Token Tracker | Etherscan
(Dec 31)
Wayback Machine (Dec 31)
Telegram: Contact @empowerai (Dec 31)
@empowerai_x Twitter (Dec 31)
@empowerai_x Twitter (Dec 31)
@DextoolsUpdate Twitter (Dec 31)
@snipeguruvol Twitter (Dec 31)
@russ5555555 Twitter (Dec 31)
@dexed_eth Twitter (Dec 31)
@VitCngNguy17228 Twitter (Dec 31)
Empower AI live price : EMPAI/WETH - Dexed.io - The Degen Dashboard (Dec 31)
Ethereum Transaction Hash (Txhash) Details | Etherscan
(Dec 31)
Ethereum Transaction Hash (Txhash) Details | Etherscan
(Dec 31)
@PeckShieldAlert Twitter (Dec 31)
@Bojo0x Twitter (Dec 31)
@Bilaxy_exchange Twitter (Dec 31)
@Bilaxy_exchange Twitter (Dec 31)
@Bilaxy_exchange Twitter (Dec 31)
@web3_watchdog Twitter (Dec 31)
@ChainAegis Twitter (Dec 31)
Empower AI | Empower AI (Dec 31)
Empower AI | Empower AI (Dec 31)
Strategy Details | Empower AI (Dec 31)
@DavidBacZit Twitter (Dec 31)
@CoinspeedrunBot Twitter (Dec 31)
@crypto_rick_gm Twitter (Dec 31)
@frog_elon63336 Twitter (Dec 31)
@bot_hype13170 Twitter (Dec 31)
@TokensEthereum Twitter (Dec 31)
@FXCryptoBots Twitter (Dec 31)
@blackhat_TM Twitter (Dec 31)
@Cryptosymbool Twitter (Dec 31)
@troymc23 Twitter (Dec 31)
@Muhamma73022712 Twitter (Dec 31)
@whisperchad Twitter (Dec 31)
@DegenFinders Twitter (Dec 31)
@cmethbot Twitter (Dec 31)
@atlantes_io Twitter (Dec 31)
@zBischoffz Twitter (Dec 31)
@Alazioo Twitter (Dec 31)
@SeanT3621 Twitter (Dec 31)
EMPAI/WETH - Empower AI Price on Uniswap V2 (Base) | GeckoTerminal (Dec 31)
https://www.binance.com/en/square/post/2024-04-11-empower-ai-rug-pull-100-6625821571938 (Dec 31)
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