UPDATED: Oyster Pearl (PRL) founder exit scammed after printing 4 million PRL tokens and selling them immediately on Kucoin

UPDATE: Read the latest about this drama as the founder and culprit “Bruno Block” speaks up.

According to the first rumors received on Reddit just now, a Dev has deliberately called a function that allowed the creation of new PRL tokens, then sold immediately on an exchange.

It appears to be an internal member of the team, who called up the transferDirector function about 6 hours ago and granted himself administrator rights. This function can only be performed with the private key of the person who created the smart contract.

It is not yet known whether it is the developer in person or someone else in possession of certain sensitive information. We will update this article if there is any news.

Subsequently, the smart contract functionalities of the ICO sale were reopened. Through all this it was possible to “print” 4 million Oyster Pearl (PRL) tokens for an equivalent value of almost 1 million dollars (at that precise moment).

A few hours ago the token was worth about $0.23 and its ATH was $4.85 in the first week of January 2018. Currently the price of PRL is $ 0.076 with a loss of more than 60% in a few hours.

About an hour ago the official Twitter account of Oyster Pearl (PRL) announced that token trading on the Kucoin exchange has been suspended:

However, they have stated that there are no bugs within the smart contract and that it is not a programming error. They don’t know why this happened and are trying to solve the problem:

Kucoin accounts for about 80% of the daily volume of PRL tokens, the rest is traded on Cryptopia and a few other exchanges. Surely going from 20 million dollars of market capitalization, to 6.5 million is not at all an easy blow to absorb both for investors and for those who firmly believe in the project.

However, it remains to be seen what to do once trading on Kucoin is re-established. The value of the token could fall again since the news has just come out and certainly there are many holders who have not been able to make a decision in time.

Stay with us for any further updates!

UPDATE:

Team came out with an announcement – it was their anonymous founder, Bruno Block that stands behind this.

“This contract was written by Bruno Block prior to the ICO, at which point Bruno was the only member of the team. We relied on the auditors involved here for assurance that the smart contract was safe. Bruno was the only one who had the ability to transfer directorship within the PRL smart contract. After our initial review, we are inclined to believe that these were solely the actions of Bruno Block and that he did this now to avoid detection from KuCoin KYC procedures (that will be implemented on November 1st). These KYC procedures would have limited withdrawals on Non-KYC’ed accounts to no more than 2 BTC per day and would have prevented this from happening. This was well-orchestrated and well-executed (at a time when he knew a majority of the KC team would be offline). ”

Here is the full disclosure by the team.

 

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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Philipp Traugott

Philipp Traugott

Phil Traugott is a staff writer at CaptainAltcoin. As a trained marketing specialist for copywriting and creative campaigns, he has been advising top companies on the following topics: online marketing, SEO and software branding for more than 10 years. The topic of crypto currencies is becoming increasingly important for companies and investors and he found it very alluring and fitting for his skillset which prompted him to pivot his career towards blockchain and cryptocurrencies.

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