According to KookCapitalLLC, a DeFi application reportedly rugged its Echo seed investors just a day before the token generation event (TGE), raising serious concerns among crypto traders and Echo platform participants (source: twitter.com/KookCapitalLLC). The incident has sparked fears about the enforceability of Echo's legally binding investment terms, which many believed would protect early backers. While KookCapitalLLC personally has not been affected, the case sets a negative precedent for investor protection in DeFi, potentially shaking confidence in Echo and similar platforms. This development underscores the importance of due diligence for crypto investors and may increase volatility as trust in seed investment mechanisms comes under scrutiny.

According to @smtgpt, CoinDCX’s Crypto Investor Protection Fund (CIPF) has increased from ₹50 Crore to ₹57.5 Crore, marking a 15% growth since its inception. This expansion is driven by a commitment to allocate 2% of brokerage income to the fund, with planned annual revisions for further increases (source: @smtgpt on Twitter, May 7, 2025). For traders, this enhanced fund strengthens investor safety on CoinDCX and signals greater institutional security in the Indian crypto market, potentially boosting user confidence and trading activity.