NFT Exchange SudoRare Experiences “Rug Pull” Of $800,000 Six Hours After Launch

Six hours after it began operating, the decentralized non-fungible token (NFT) exchange SudoRare went offline, and tokens worth more than $800,000 were withdrawn from the platform’s wallet address.

The money has already been transferred to three other wallets, according to PeckShield data. One of the wallets has been identified by PeckShield as belonging to a Kraken user.

PeckShield and other observers made the assumption that the project’s founders were responsible for its demise. This is due to the fact that they were the only individuals who were probably to have access to the liquidity in the pool; the hack occurred quickly after launch; it was carried out by an anonymous team; and the team promptly removed all the social media profiles and associated websites. As a result, it was probably a “rug pull,” where the founders of a project extract all the funding they can from it and then abandon it.

The USD Coin (USDC), looksrare (LOOKS), and ether (ETH) tokens were all taken from the NFT exchange platform by the rug pull. On Uniswap, the LOOKS and USDC tokens have already been exchanged for ETH. In total, the rug pull drained 519 ETH ($815,000) from the platform.

A mere six hours have passed since the NFT platform launched before Tuesday’s rug pull. The platform’s social media pages and websites, as well as its Medium blog page, have also been deactivated. Before the ruse was pulled, there were a number of Twitter cautions that SudoRare might be a fraud enterprise. The unnamed team was mostly blamed by critics as the source of their suspicions.

LooksRare and SudoSwap were intended to be integrated into SudoRare

They are both NFT markets. As a decentralized marketplace for trading NFTs, SudoSwap enables the establishment of liquidity pools for NFT collections. Similar to OpenSea, LooksRare is more of a conventional NFT marketplace, but it features a native token called LOOKS that is used to reward users who buy or sell NFTs on the platform.

These two purposes were intended to be combined by SudoRare, which would have allowed users to stake SR, the project’s native token, in exchange for ETH trading commissions. That is, until every last penny vanished.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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