In a Twitter post, ZachXBT warned crypto users of a suspicious project on the Base network named Magnate Finance. ZachXBT is an anonymous Twitter user and crypto trader renowned for exposing NFT projects, and influencer rug pulls.
As he tweeted, Magnate Finance’s deployers address is directly linked to the Solfire, a project that has scammed users $4.8 million last year. So, ZachXBT suspects that Magnate Finance will likely exit scam in the near future.
Magnate Finance (MAG) is a lending protocol operating on Ethereum layer 2 network Base with TVL of $6.4 million at the time of writing.
Activities on Base have become vibrant and attracted a lot of attention from major projects since its launch. This platform has become the fastest Layer 2 (L2) solution to reach 100,000 users, achieving this milestone a mere 56 days after its launch. However, along with success, many projects on Base were hacked or scammed user’s money.
SwirlLend, a crypto lending platform operating on Layer-2 Base, has pulled off a $450K exit scam on its users. The SwirlLend scam happened two days after RocketSwap was hacked, resulting in a loss of $865K. Before that, and even before the platform was officially open to the public, the BALD coin lost 85% of its value on July 31, after the developer “added/removed 2 sided liquidity and bought.”