X Layer Scam: What Happened With Just $300,000 in Funds?

On November 11, crypto asset KOL AB Cui.Dong dropped a bombshell on social media. The X Layer project Halo 402 is under fire amid suspicions of a “rug pull.”

What happened?

Amount raised: $300,000
Liquidity provided: Virtually zero
Result: Token price plummeted

Red flags raised

According to community investigations, there may have been a “backdoor” planted in the smart contract. The development team was allegedly able to mint unlimited tokens. In other words, after raising funds, they could print as much currency as they wanted and cash out—a classic scam scheme.

Highly suspicious response

Once pointed out, the project team:

• Shut down the comments section
• Completely denied the public chain allegations

This is the typical response pattern of scam teams.

Lessons learned

1. Check contract audits—Verify if there are any backdoors.
2. Check the liquidity ratio—See if most of the raised funds are in the LP.
3. Team transparency—Projects that run away from criticism are out of the question.

Cases like this come up every week in the crypto world. DYOR (Do Your Own Research) is truly a matter of survival.