Developers behind non-fungible token (NFT) platform Sudorare rugged users for over $800,000 in various cryptocurrencies Tuesday before deleting the project’s online footprint.
Sudorare was a fork of decentralized NFT marketplace SudoSwap, known for its liquidity pools for NFTs and cheaper gas fees, and LooksRare (LOOKS), another NFT marketplace that rewards users for their participation on the platform. Both projects have gained popularity among crypto circles in the past year.
Sudorare offered a yield farm to users who staked LOOKs, XMON and wETH for its own tokens over one week.
However, blockchain data from Tuesday morning shows Sudorare developers illicitly emptied the LOOKS liquidity pool just six hours after it went live, swapping over 1 million LOOKS for 154 ether and 60,000 USDC in one such transaction, and thus pulling off a colloquial “rug pull.” The developers stole over 514 ether in all, valued at just over $815,000 at current rates.
In decentralized finance (DeFi), rug pulls are scams where the developers conduct legitimate work on a blockchain and then drain the liquidity pools from the project, essentially "pulling the rug" from under investors and causing a sharp fall in related tokens.
The rug pull occurred despite several Crypto Twitter users previously warning against investing in the Sudorare project in the past week, flagging its tokenomics, the presence of fake online followers and high yields offered to retail users.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.