Priyeshu Garg · 16 hours ago · 5 min read · Insights via Vitalik Buterin
The team behind the Claymore (CLM) token project, a deflationary cryptocurrency launched on the Ethereum blockchain, appears to have pulled an exit scam. This, according to a post from a Reddit user, who revealed that all social media accounts associated with the Claymore token have now been deleted.
As explained by its creators, the Claymore cryptocurrency was as an ERC-20 compliant, peer-to-peer (P2P) “cash token.” The total supply of CLM tokens was capped at 74.9 million, and the cryptocurrency was being actively traded on DDEX, a leading decentralized exchange for Ethereum tokens.
Claymore’s developers also claimed that the digital currency was created to help prevent financial manipulation and minimize the adverse effects of high volatility. Available data shows that CLM tokens had been trading at around $0.000338, with the last reported 24-hour trading volume of about $26,205.
Claymore token listed on exchanges without security audit?
The Burn Token Twitter account questioned how the Claymore token managed to get listed on DDEX, CoinExchange, and Mercatox without a security audit of the cryptocurrency’s codebase.
How was @claymoretoken listed on CoinExchange, Mercatox & DDEX without a security audit of their code? pic.twitter.com/218PdJegcE
— The Burn Token (@BurnToken) July 15, 2019
Responding to Burn Token’s tweet, a Claymore token holder said he had converted his holdings to fiat currency as he suspected that “something crazy is going on.”
Meanwhile, other social media users asked why comments on Claymore token’s Telegram account had been disabled. Twitter user Asad Qayyum warned everyone to stay away from the crypto project:
They have started to block people who raising questions in telegram group stay away from this project … and i am sure now they will start to ban people here on twitter too
— Asad Qayyum (@iasadqayyum) July 12, 2019
Claymore token project displays red flags, making it “high-risk”
Another Twitter account, named “dzoelx”, said that the Mercury Currency and Nuke Token projects had been trading Claymore tokens after the crypto’s team members allegedly pulled an exit scam.
Doesn't this look fishy? @merocurrency and @NukeToken swapping $Claymore after their devs exit scammed? There's more to this than we can understand.
I will always stand by the most transparent project @VOID_Token_ . Btw their are no big bag holders or devs to exit scam. Think!
— dzoelx (@agboifesinachi) July 14, 2019
According to Claymore Token’s official post on the BitcoinTalk forum, the cryptocurrency had been launched on June 20, 2019, with an initial supply of 50 million CLM tokens. An alert message posted on BitcoinTalk reads:
“Warning: One or more bitcointalk.org users have reported that they believe that the creator of this topic displays some red flags which make them high-risk… While the bitcointalk.org administration does not verify such claims, you should proceed with extreme caution.”
Fake team members, “stealing” people’s identities
Bitcointalk forum member, morvillz7z claims that the Claymore project had fake team members and accused the crypto’s creators of stealing people’s identities. He also mentioned that the website did not have a link to a whitepaper and the LinkedIn profiles associated with the project were fake.
Notably, a video posted to YouTube by MicLabTV (on July 14, 2019) pointed out that the Claymoretoken.com website appears to have been hacked. A message on the website states that it was hacked by “the #1 Indian Ethereum Pentesting team – r0p00 CR3W.”
The hackers also left a message for John (the CEO of the Claymore token project) that reminded him to change passwords when working on new projects. According to details shared by MicLabTV, he personally lost a significant amount of money as the value of the CLM tokens has dropped by more than 90% in the past two days.
He also revealed that before the Claymore token website went down, his name was mentioned on the website as he was a social media promoter for the project.