Non-fungible token (NFT) platform SudoRare has shut down its services and deleted its social media accounts in an apparent rug pull, blockchain investigator PeckShield reported on 23 August.
According to the announcement, the developers behind SudoRare took off with around 519 ether (ETH), or roughly $815,000, which have already been transferred to 3 new addresses, 173 ETH each. The rug pull claim is further supported by the fact that the NFT platform has since shut down its services, and also deleted its main website (sudorare.xyz) and social media accounts.
Prior to the incident, several users had issued warnings on Twitter against the project, pointing to its tokenomics, fake online followers, and high yield promises. SudoRare was a fork of NFT marketplaces SudoSwap and LooksRare — both of which had gained popularity over the past year — that offered yield farm to users who staked their LOOKS, XMON, and wETH tokens for its own over one week.
Blockchain data shows that SudoRare’s developers emptied the project’s LOOKS liquidity pool only six hours after it was launched, exchanged all of the tokens for ETH, and disappeared with roughly $815,000. This incident should remind investors to do their own research before investing in crypto projects, especially if they promise unrealistic returns.