Lena Network's Candy IFO Ends in Disaster With $2.9M Rug Pull Fallout

The Lena Network's liquidity protocol has suffered a blow after its Candy token experienced a dramatic 87% drop, resulting in losses of approximately $2.9 million due to a rug pull incident. 

Data from Etherscan revealed that the Lena Network deployer address transferred 753.11 Ether to an address associated with OKX exchange on March 6, at 2:30 am. Interestingly, the incident occurred just hours before Lena Network officially renounced ownership of the Candy token contract.

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Ambitious Launch Turns Sour

Lena Network's ambitious Candy Initial Farm Offering (IFO), which concluded on March 3, raised over 850 ETH ($3.2 million). The token's much-anticipated debut on March 6 quickly turned into a disappointment, with the price plummeting from a daily high of $3.08 to a mere $0.38 by 12:48 a.m. UTC, based on Dexscreener data.

However, Lena Network recently announced an AMA space to address the community's concerns, scheduled for March 7, 12:30 AM UTC.

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A Broader Trend

The Lena Network incident adds to the growing trend of security concerns within the cryptocurrency space. In 2024 alone, losses from hacks and rug pulls have exceeded $200 million, marking a 15.4% increase compared to the early months of 2023. 

The Lena Network incident follows closely after another concerning incident. OrdiZK, a cross-chain bridging protocol, is accused of orchestrating an exit scam that left investors with substantial losses totaling $1.4 million. 

CertiK's investigation revealed that the protocol's deployer account unloaded a staggering 489 million OZK tokens on March 5, resulting in a catastrophic 98% plunge in the token's price.