NFT protocol SudoRare rug pulls investors for $815,000 six hours after launch

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SudoRare, a decentralized NFT marketplace, shut down operations six hours after launching. According to the blockchain security company PeckShield, the founders drained the protocol’s funds before disappearing. 

Peckshield estimates that the founders rug-pulled investors for 519 ETH, a total of $850,000, and consequently sent them to three different wallets. SudoRare immediately deleted all its social media accounts and groups, such as Twitter, Medium, and the official website. 

Peckshield also identified one of the receiving wallets from a user of the crypto exchange Kraken. Apart from Ethereum, the token LOOKS and stablecoin USDC were drained and converted to ETH through Uniswap.

The crypto community felt something was off about SudoRare. Crypto enthusiasts warned other users on Twitter several times that the project could turn out to be a scam. There were two major reasons for it: the anonymous team behind the project and the improbable returns the founders promised investors. 

The platform’s name—SudoRare—comes from a combination of popular platforms LooksRare and SudoSwap. LooksRare is a standard NFT marketplace similar to OpenSea, with LOOKS being its native token. SudoSwap, on the other hand, is an NFT protocol that allows users to access liquidity pools to buy and sell NFTs. 

Although rug pulls are more common in the crypto space compared to NFT projects, we might be seeing a change in direction. NFT holders usually fall prey to scams like phishing links. This week, blockchain analytics company Elliptic reported that cybercriminals stole over $100 million worth of NFTs during the last year.  

Even amid the crypto winter, scammers are still active and are always on the lookout for new methods to steal digital assets. 

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Agne Cimermanaite

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in Literary Studies from the University of Amsterdam and has an extensive background in writing about a wide range of topics including cybersecurity, travel, art, and culture. She has also volunteered as an editor for the animal rights organization, “Open Cages,” where she helped raise awareness about animal welfare issues. Currently, Agne splits her time between Barcelona, Spain, and Vilnius, Lithuania, where she continues to pursue her passion for journalism. Contact her on [email protected]

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