Read how the Montra Finance rug pull unfolded. | Credit: CCN.
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Key Takeaways
Montra claimed its entire development team was drafted into the Iranian military, forcing the project to shut down.
Community members quickly labeled the incident a “creative rug pull,” alleging insiders exited before the collapse.
The MONTRA token on Base plunged roughly 97%, wiping out most retail investor holdings after an $871,000 trading peak.
Crypto’s long history of rug pulls rarely lacks creativity. But the collapse of Montra Finance on Base may rank among the most unusual excuses yet.
In early March, the project abruptly announced that its entire development team had been drafted into Iran’s military service — forcing the immediate abandonment of the project.
Within hours, the project’s social media presence disappeared, and the token’s price collapsed, leaving retail traders with heavy losses.
For many in the crypto community, the explanation only fueled suspicion that the shutdown was less about geopolitics and more about a well-timed exit.
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On March 4, Montra Finance posted a now-deleted statement on X claiming that its developers had been conscripted into military service in Iran.
The message read:
“Due to unforeseen circumstances, the Montra development team has been drafted into military service in Iran. As a result, development on Montra will be halted, and the project will be abandoned. Thank you to everyone who supported the vision.”
Montra team claims its entire team was drafted into the Iranian military. Credit: Telegram.
The post included a dramatic GIF featuring military vehicles and explosions, appearing to reference ongoing tensions involving Iran in global headlines.
The announcement framed the shutdown as a geopolitical inevitability.
According to the message, the alleged military draft left the team unable to continue development, effectively ending the project overnight.
Shortly afterward, the project’s X account, Telegram channels and website disappeared, leaving no further updates or explanation.
There were also no on-chain safeguards or exit procedures typically associated with legitimate project shutdowns. The team did not burn tokens, lock liquidity or hand control to the community.
A Rapid Market Collapse
The token’s price chart captured the fallout.
Dexscreener data showed trading activity evaporating almost immediately after the announcement.
Liquidity pools held roughly 66% of the token supply, but buyers disappeared as confidence collapsed.
One trading pair showed the token falling from roughly $0.0004968 to near-zero levels, with the project’s market capitalization dropping below $40,000.
In some 24-hour windows, the token recorded losses exceeding 80% to 87%, ultimately leaving the token down roughly 97% from earlier levels.
The sudden disappearance came just weeks after launch.
Montra Finance debuted in late February 2026 and quickly gained attention among traders on the Base blockchain, fueled by aggressive promotion and a paid Dexscreener boost.
The project marketed itself as a futuristic “Web4 autonomous AI trading token.”
According to its promotional materials, Montra planned to build an automated trading infrastructure powered by a complex stack of emerging technologies, including ERC-8004, XMTP, CoW Protocol, MCP, x402 and ERC-7579.
It claimed to deliver MEV-protected and high-alpha trading strategies. The pitch attracted speculative traders looking for early-stage gains.
Trading volume soon climbed to around $871,000, pushing the project’s market capitalization to between $500,000 and $1.3 million across various Uniswap pairs.
At its peak, the token briefly traded near $0.000008 before the sharp reversal.
Community Reaction: “Creative Rug”
The project’s explanation was quickly met with skepticism.
Crypto traders across X began circulating screenshots of the now-deleted announcement, turning the “military draft” claim into a viral meme.
One trader shared the message along with the comment:
“Creative rug. The whole dev team got drafted into the Iranian military. Account deleted shortly after. Bold strategy.”
Other traders reported smaller personal losses.
One user said they lost roughly $79 trading the token on a FOMO-style trading application, publicly criticizing the project.
Meanwhile, on-chain analysts began examining transaction data for clues about what happened before the collapse.
According to analysis shared by blockchain researcher Chyan, Nansen data showed that several of the top profit-and-loss wallets had already exited their positions before the crash.
At the same time, newly created wallets injected roughly $53,000 of fresh liquidity in the final week — a pattern that some traders described as typical of retail traders entering late while insiders exit.
Trading volume also fell sharply, dropping from an $871,000 peak to roughly $2,500 per day shortly before the collapse.
Several community threads on X also highlighted the Dexscreener promotion as a potential red flag.
A Familiar Pattern on Low-Cost Chains
For critics, the episode reflects broader risks within fast-moving meme token ecosystems.
Networks like Base offer low fees and easy token deployment, which has fueled rapid experimentation — but also made it easier for anonymous teams to launch speculative tokens and disappear just as quickly.
The Montra Finance collapse followed a pattern often seen in speculative markets: aggressive marketing, a surge of retail trading and a sudden disappearance once liquidity dries up.
Some community members called for deeper on-chain investigations, though with the project’s accounts deleted and liquidity largely drained, the chances of recovering funds appear slim.
For traders watching the episode unfold, the lesson was familiar.
In a market where launching a token takes minutes, trust — not technology — often remains the most fragile piece of infrastructure.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
