Spectra Chain’s native token, SPCT, faced a drastic drop of 43% on Friday morning due to allegations of a potential rug pull by its team. Currently, the token is trading at $0.0094, showing a 27% decrease in the last 24 hours.

Previously, SPCT reached an all-time high of $0.05065 on April 9, 2024, but it has now fallen by 81.66% from its peak. Spectra Chain, which recently introduced its Layer 2 solutions on April 16, utilizes a Proof of Stake consensus mechanism to enhance scalability, reduce transaction costs, and support complex smart contracts.

The ecosystem includes a Chain Explorer for transparency and security, a Decentralized Exchange (DEX), and an NFT Marketplace for digital asset trading. However, the community’s confidence was shaken when reports surfaced that the official Telegram channel of Spectra Chain had been closed abruptly.

Concerns were raised by SPCT token holders on social media platforms, with some pointing out potential connections between the founders of Spectra Chain and previous projects involved in fraudulent activities. This led to doubts about the project’s transparency and future sustainability.

Similar incidents have occurred in the crypto industry, such as the case of Grand Base, where the token value plummeted by nearly 100% due to suspicions of a rug pull resulting from an exploit. It is essential for investors to remain cautious and conduct thorough research before engaging with any cryptocurrency project.

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