What can we learn from Viking Swap and the VIKING token?

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Good morning everyone, I know I don't usually start with that sentence but from today I have made it a point to be nicer to the people who read my content. Yesterday I was browsing through the CMC cryptocurrency list and I came across the popular cryptocurrencies or the ones that at that moment were having an upside, which I found interesting since the crypto market was suffering a massacre, and all the charts were red (some are still red).

And although they were a small rise of 9% or 25%, the one that surprised me the most was the rise of the VIKING token as it was in a rising trend with a massive 253% and while the BTC or ETH were suffering losses, this coin was revaluing rapidly.

Because of this, I found it interesting to investigate more about this token and know where it came from and the use it had, so when I visited the official page that CMC indicates, I realized that this token belongs to a defi based on BSC as well as cubdefi, called Viking swap.

And as it was similar to the cub defi, I went directly to what I am interested in which are the farms to see the yield they offered and how many investors were in that project, but again I was surprised to see the APR that is above 500%. and with a 40X.

But despite the good ROI, you can have if you invest in these farms, I found it suspicious that the LTV or what was staked on it was extremely low as no farm was even over $100K staked and the total LTV was not even $500K.

So I started an investigation that began with CMC to see if this token had a sharp price drop. And it did, because between February 28 and March 10 the VIKING token went from being worth $73 to be worth $0.2, that's brutal.

I kept looking for information related to this defi and the token and I found something surprising since I was thinking that since it was a BSC-based defi that it had been hacked or that its creators decided to take everything and go to the Bahamas. But in reality what happened was something complex, as the code had not failed, nor a hack had happened, what happened that shook this defi and its token was the same thing that shook the cryptocurrency market recently: "People's ignorance and stupidity ".

You can stumble upon an exhaustion analysis by the writer Jim Qode of the portal Hacker Noon. This publication is titled: What Does A DeFi Rug Pull Look Like: A Viking Swap Story, Jim explained in detail what happened:

the “devs” didn’t put much trust in their token after all and they didn’t keep their promise to buyback VIKING tokens with the armory fees. It is possible that all the other functionalities of the service was just a front to pull money into Armory Vaults to get the developer fees. When the armory started to slow down and VIKING token price inevitably tanked they just pulled the plug.

So is this a rug pull? Not really, as the code was solid and none of the staker funds could be moved by the developers. They just took the developer fees that they and never did what what they promised with it, buying back VIKING tokens.

That inevitably to lead to tanking of the VIKING price because all stakers sold their VIKING tokens to realize their “gains”. When the music stopped they shut down the shop and took the developer fees with them. So I think this is an exit scam. And it clearly shows stakers don’t have the knowledge to check if the devs are doing what they promised.

In short, the fault of this scam was the same people who invested, as these people invested with the hope of getting rich and seeing a high APR, blindly believed in the project without doing the proper research first, as most of the BSC defi's are clones of each other without any authentic business model, and not all that money that people start putting into these defi's, is filtered through the layers. And in this project, a good part of the money went directly to the developers, which led to a failed project and a lot of dumb people got ripped off.

And the sudden price drop of the VIKING token is due to the high fear of the users because when they saw that the developers closed the telegram channel through which they could get support immediately they got desperate and the FUD did its job and the token lost more than 99% of its value in 10 days.

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The world is full of stupid and ignorant people who seek wealth quickly and easily, with little or no effort, and some people see that hunger for money and take advantage of it to swindle them.

That is why it is very important not to believe blindly in projects that come out and promise high returns in a fast way because they can go bankrupt or you can lose all your money in a few moments.

Research very well and study all the investments you are going to make in order not to put anything at risk, and although nothing is safe in this life, at least you will not end up scammed like the clowns who blindly believed in Viking Swap without doing any DYOR.

Always be on your guard and remember, if it sounds too good to be true, it probably is!

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