Failed projects or token launches are not new in the crypto space, especially in the meme coin sector. However, for a project to fail, face a potential rug pull, and yet come back to the community – that’s rare. MEMEPad is seemingly doing just that.
Back in June, MEMEPad, a promising launchpad for Solana meme coins, found itself at the center of a shocking breach and betrayal. What began as a promising journey to empower creators turned into a fight for survival after a rogue developer siphoned funds from the project's public raise.
Now, the MEMEPad team is focused on rebuilding, offering a bounty to recover stolen assets, and launching a community-driven revival plan.
The Breach That Shook MEMEPad
On June 21, 2024, just a week after MEMEPad's successful public fundraising round, tragedy struck. A smart contract associated with the raise was breached, resulting in the theft of 2,000 Solana—funds crucial for launching the platform's native token, MPAD.
Despite the adherence to industry-standard security protocols, a deployment oversight provided an opportunity for exploitation.
The culprit, identified as Oleksandr Andriyovych Liutko, had been hired as a freelance developer to create test suites for MEMEPad’s smart contracts. Liutko’s betrayal was not a one-off incident.
He has been linked to multiple breaches, including an attack on the Lefeef project, where he used a similar pattern to steal 199 million tokens from circulation. Recent discovery indicates that he fled Ukraine using falsified documents, crossing into Poland, further complicating recovery efforts.
Hitting Legal Roadblocks
Pursuing justice has been a gruelling process for the MEMEPad team. Legal channels have proven uncooperative, leaving the project to rely on law enforcement agencies in other jurisdictions and private investigations. While the team has shared detailed findings, including Liutko's methods and last known whereabouts, authorities have been less than effective. The case also highlights how the lack of unified policies complicates the investigation and prosecution of crypto crimes.
Faced with these challenges and after exhausting all negotiation, recovery and legal avenues, MEMEPad turned to its community for support. A 20% reward is now on the table for anyone who can provide actionable information or recover the stolen assets.
Out of the Ashes: a Bold Revival
The breach significantly delayed MEMEPad’s roadmap, including the much-anticipated token generation event (TGE). Limited liquidity and the absence of funds to execute a proper marketing campaign forced the team to reconsider its strategy.
However, despite the setback, MEMEPad’s commitment to its vision remains unshaken. After consulting with its largest backers, MEMEPad proposed two potential paths to the community for launching MPAD:
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Launching on Pump.Fun, a viral platform designed for meme coin visibility and liquidity.
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Conducting a fresh fundraising round in Q1 2025 while maintaining the existing tokenomics.
As the vote concluded on December 19, the community overwhelmingly chose the first option, signalling a desire to move forward without further delays. The strategy includes launching the $MPAD token on PumpFun, with a 40% dev buy of the token supply. All investors will retain the same percentage of supply based on the current tokenomics but with shorter vesting schedules.
This strategy will give Memepad access to PumpFun's active and engaged community to drive early adoption and virality. The team is also planning to leverage their KOL network to push the launch and gain engagement and awareness towards the launch which is to take place on Friday, 3rd January 2025.
The project is advancing development on its ecosystem, including DegenZone and MemeQuest, platforms planned to launch by early 2025. These platforms will provide utility features to reinforce MEMEPad’s core mission of empowering creators and communities. Rebuilding trust remains at the heart of their strategy as the team works to ensure such vulnerabilities are never exploited again.
Lessons for Crypto Projects
MEMEPad’s story reflects the fragility of trust in the crypto industry. It shows that security is not just down to the technicalities. There’s no room for error in this space. Projects need to assess and know their contributors thoroughly. Also, a contingency plan is imperative. Although crypto adoption has come a long way, the industry is yet to mature – especially when it comes to security. So, in the highly likely scenario that projects might not pan out as planned, a contingency plan can help teams to bounce back. While this breach tarnished MEMEPad’s journey, it also showcased the resilience of its team and community.
As MEMEPad prepares for a new chapter, its determination and comprehensive revival plan can motivate projects facing similar challenges. The success of $MPAD is yet to be tested, but it’s certainly on the right track to win back community support and regain credibility.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.