A group of developers performs a “rug pull” on their customers.
SudoRare, an automated market maker (AMM) protocol, has deleted all social media accounts and allegedly rugged users for around $815,000.
The news broke after Twitter user sungjae_han noticed suspicious transactions within the platform. Afterward, another Twitter user, PeckShieldAlert, shared a detailed tweet about the rug pull.
According to the blockchain data, SudoRare has been drained using USD Coin (USDC) and LooksRare (LOOKS). Initially, the developers took out more than 1 million LOOK, which later was exchanged for 154 Ether (ETH) and 60,000 USDC. In total, developers removed 514 Ether (around $815,000).
After noticing that SudoRare has deleted all of its social media accounts and deactivated its website, it becomes clear that developers have performed a “rug pull”.
The term “rug pull” refers to the malicious act when developers abandon their projects and run away with customer funds. It essentially “pulls a rug” under the feet of the user, causing a strong fall.
SudoRare held two NFT marketplaces under its wing, SudoSwap, and LooksRare. SudoSwap, a decentralized NFT marketplace, has NFT liquidity pools and is marketed as having cheap gas fees. Another company is LooksRare (LOOKS), which is also an NFT marketplace.
SudoRare has offered yield farming services for those users who were keen to stake using XMON, wETH, and LOOK.
In the past week, Twitter was buzzing with warnings advising users not to use SudoRare. Some users emphasized that high yield rewards, tokenomics, and fake social media followers are only a few red flags that popped up when analyzing this AMM protocol.
On August 17th, Twitter user Brentsketit tweeted:
This user wasn’t the only one speculating that SudoRare is a scam and investors will get their funds stolen. On August 23rd, crypto community members used Twitter to thank those who spotted the scam and announced it early on.
This article was originally published in Bitdegree and can be viewed here: