Examining the Price of CarbonEco during August 2021
Purpose. With the price of CarbonEco (c0) below the ICO price and below the Pre-Sale price for some participants one of the members of our Telegram group asked if it was possible that c0 had experienced a “rug pull.” This post explores this question.
Data. We first use the definition of Rug Pull offered by Coin Market Cap:
A rug pull is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds. Rug pulls usually happen in the decentralized finance (DeFi) ecosystem, especially on decentralized exchanges (DEXs), where malicious individuals create a token and list it on a DEX, then pair it with a leading cryptocurrency like Ethereum. Once a significant amount of unsuspecting investors swap their ETH for the listed token, the creators then withdraw everything from the liquidity pool, driving the coin’s price to zero. (Source: https://coinmarketcap.com/alexandria/glossary/rug-pull)
To explore this question we examined the transactions during August 2021, which included the Pre-Sale and the ICO. The participants in these activities included Pre-Sale buyers, ICO buyers, and Sellers.
~120 wallets received Pre-Sale tokens (15 trillion tokens).
~220 wallets bought c0 during August (i.e., ICO and weeks following it) (339 transactions, 6 trillion tokens).
~140 wallets sold after the ICO (204 transactions, 11 trillion tokens).
As we look at all the transactions we see the following:
38% of Pre-Sale participants held and did no selling.
62% of Pre-Sale participants did some selling.
67% of ICO participants held and did no selling.
33% of ICO participants did some selling.
When a Pre-Sale participant sold, they sold 84% of their tokens (on average). When an ICO participant sold, they sold 94% of their tokens (on average).
No one sold everything. The most prevalent behaviour by sellers was to keep a small position. 113 kept less than 10% of their original position. 14 kept 11–50% of their original position. 10 kept more than 50% of their original position.
The liquidity pool for the ICO began at 76 ETH. It is presently at 41 ETH (54%).
Now let’s test CarbonEco (c0) against the Rug Pull definition.
A rug pull is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds.
Not True. CarbonEco is not an abandoned project. The sponsors of CarbonEco have not run away with investors’ funds. The proceeds of the Pre-Sale and the ICO Liquidity Pool remain here in these wallets:
Pre-Sale Wallet: 0xfeb8efB3426ad7852942fc4a75DaeBBa2cCd58a4
Charity Wallet: 0x83254aE301762773Cf904e43913B5B67Ee04a240
Carbon Dioxide Offsets Wallet: 0x275797DaA789B4030922500b10979394b500Afd9
Dev Wallet: 0x352a64A31a6F12c27d4A8dC8bfCF57356D6768cD and 0xcEe9FddAAC2E600b02759A97dcDcCFa938299676
Marketing Wallet: 0x4adf1662Ea828752dE5DdB4239224Edead836aa2
c0 Original Sponsor Vesting Wallet: 0xb83a64146E01163455C2f85F70882E1fE69508aB
Revenue Wallet: 0xC3e9687dF3D38A0D82495b695e1788f2A3089476
Treasury Wallet: 0x14F705321a201f4f0A0f0Ff36D4Fe83d37543334
Uniswap LP Wallet: 0x14F705321a201f4f0A0f0Ff36D4Fe83d37543334
Burn Wallet: 0x000000000000000000000000000000000000dead
Rug pulls usually happen in the decentralized finance (DeFi) ecosystem, especially on decentralized exchanges (DEXs), where malicious individuals create a token and list it on a DEX, then pair it with a leading cryptocurrency like Ethereum. Once a significant amount of unsuspecting investors swap their ETH for the listed token, the creators then withdraw everything from the liquidity pool, driving the coin’s price to zero.
Not True. CarbonEco is using Uniswap v2, which is a Decentralized Exchange. All Pre-Sale and ICO participants understood this. The creators have not withdrawn everything from the liquidity pool. The Liquidity Pool rose from 76 ETH to 110 ETH. Both Pre-Sale and ICO participants pared back their exposure to CarbonEco after 100%+ price appreciation and in doing so they removed 46% of the liquidity pool. The CarbonEco sponsor has only been buying c0 as this wallet shows: https://etherscan.io/address/0x89cad9acf858d4807fea018160924752a21b8156#tokentxns
Based on this examination, it is not correct to describe the situation with CarbonEco’s price action during August 2021 as a rug pull. We remain committed to our technology roadmap and the statements in our white paper (https://www.carboneco.trade/whitepaper).
