Spectra Chain’s native cryptocurrency, SPCT, witnessed a sharp downturn, plummeting by 43% during Friday’s trading session, as accusations of potential misconduct by its team emerged.
As of the latest update, the token is exchanging hands at $0.0094, marking a staggering 27% decline within 24 hours.
Previously scaling to its pinnacle at $0.05065 on April 9, 2024, SPCT’s current valuation stands at a stark 81.66% below its historic high.
Spectra Chain, renowned for its Layer 2 solutions launched on April 16, boasts a Proof of Stake consensus model aimed at enhancing scalability, reducing transaction fees, and facilitating intricate smart contract deployment.
The ecosystem encompasses a Chain Explorer for heightened transparency and security, a Decentralized Exchange (DEX), and an NFT Marketplace for digital asset trading.
However, the community’s trust took a hit when reports surfaced on X, a social media platform, alleging the sudden closure of Spectra Chain’s official Telegram channel.
Adding fuel to the fire, a user under the alias ‘lean’ implicated Spectra Chain’s founders in past projects associated with similar fraudulent practices.
Drawing parallels between Spectra Chain’s team and the actors behind VC Spectra, a project previously embroiled in a rug pull controversy, the user raised concerns regarding the potential collapse of Spectra Chain if promised transparency or “team dox” remains elusive or indefinitely delayed.
Further exacerbating the situation, Michael Gugliotti, a private investigator, detailed VC Spectra’s history of evading launch dates and altering token objectives on their website in a Medium post dated December 21.
Gugliotti’s post highlighted instances where clients reported suspension of accounts and cessation of communication, leading to fraud allegations reported to authorities including the FBI, FTC, and SEC.
Notably, on April 15, Grand Base experienced a near-total collapse in token value after its deployer allegedly minted millions of new tokens, sparking concerns of a rug pull later attributed to an exploit by the project’s spokesperson via a Telegram channel disclosure.