The Kokomo finance company has simply flied off the radar, their social media pages and websites are offline too after the prices fell more than 95% in minutes.
Kokomo Finance which is an optimism based lending protocol is a suspect of a four million USD exit scam, as CertiK the blockchain security firm alerted the investors with a 26th March tweet. The value of their token KOKO has also experienced a downfall of more than 95% in its prices.
CertiK the blockchain security firm has also removed their social media accounts after this alleged rug pull as well. As per the data we have currently, Kokomo Finance attacked the smart contract code and then reset the settings like reward speed and paused the borrow function which after a domino effect has helped Kokomo Finance to get a profit of 4million USDs.
Kokomo Finance Exit Scam Suspect
The security firm has said that this probably has been the biggest incident that they have discovered on optimism. The Kokomo finance was a noncustodial open-source lending protocol available on optimism, where the investors could trade for Ether, wBTC, USDC and Tether.
Kokomo Finance has rose up very quickly in the rankings in the recent days. With the blockchain data platform like Defilama and CoinGecko tracking it officially after it was launched on 25th March. The new screenshots that revealed that over two million has been locked into the business firm before it fell more than 97% in the market.
Over 72% of the capital locked in the firm came shaped in wrapped BTC as per the available datas. Cointelegraph also tried to access the websites and social media. However, all these links leads to error pages that indicates the removal of them.