The financial damage from crypto rugpulls escalated dramatically in the first quarter of 2025, reaching nearly $6 billion. This figure represents a staggering 6,500% surge compared to the $90 million lost during the same timeframe in 2024, according to recent blockchain analysis.
Web3 initiatives saw substantial losses, primarily driven by a single catastrophic event. Analysts note that the Mantra network incident accounted for a massive 92% of the total funds drained, marking it as one of the most significant individual crypto scams observed lately.
[Crypto scams turn deadlier in Q1 as rugpull losses surge 6,500% – 1]
Interestingly, while the monetary losses soared, the actual frequency of these scams decreased. Reports indicate only seven major rugpull incidents occurred in early 2025, down 66% from the 21 recorded in the first quarter of 2024. This suggests a trend towards fewer, but far more devastating, fraudulent schemes.
The Mantra Network case serves as a stark reminder of misleading indicators within the crypto space. Despite any claims of adoption, the platform’s peak Unique Active Wallets barely reached 64 in late 2024. Understanding metrics like these is crucial, similar to understanding concepts like what is staking in crypto?.
Outside this minor peak, daily wallet activity often hovered between just 1 and 11, frequently dropping to zero. Such low and inconsistent user engagement signals minimal real-world traction, a potential red flag for projects asserting growth.
Transaction data further supported these concerns. While some days saw up to 66 transactions, activity often plummeted back to zero shortly after. Experts suggest these erratic patterns often point towards inorganic engagement, potentially used to manipulate perceptions of a dapp’s activity level. For newcomers, understanding these nuances is vital; resources for cryptocurrency trading for beginners can offer foundational knowledge.