Rug Pull

Speculations of a rug pull have begun circulating after SudoRare, an AMM protocol for ERC-721s to ERC-20 swaps unexpectedly stopped running. The platform’s social media accounts are no longer active and the founders appear to have carted off 519 Ethereum tokens, about 519 ETH, about $815K. SudoRare Wallet Drained, Social Media Goes Offline Crypto analyst @sungjae_han first sounded the alarm via a tweet this morning. The post pointed out a strange transaction on SudoRare’s etherscan data. Using LooksRare (LOOKS) and…

A rug-and-pull is a typical fraudulent method of luring investors to a financial enterprise only to abandon the project and run away with the raised funds. Unfortunately, this scam has become increasingly popular in crypto. And with the emergence of non-fungible tokens (NFTs), the risk of NFT rug pulls becomes real. This article examines how rug pulls work with NFTs and how to avoid them. What Are NFT Rug Pulls? An NFT rug pull happens when the developers of an…

There is nothing as frightening to any investor as a financial scam, especially one that wipes out one's entire investments in a project. Such occurrences aren't just an enclave of cryptos either. The 2008 stock market crash caused by the too-big-to-fall Lehman Brothers caused a devastating global wipe-out of people's savings. The rug pull scam is frightening, though it's not quite to the scale of the massive mainstream financial crisis that sends entire economies reeling back several years. So what…