Twitter has been warning investors about scam projects, and now SudoRare has disappeared with more than $800,000 in user funds.
SudoRare is the latest NFT project to run away with user money and disappear from social media. This is yet another horror story for NFT investors. This happened on Tuesday morning when, despite all the warnings from Twitter users about the project’s credibility, the project deleted all of their social media accounts.
The Origin of the SudoRare Heist
SudoRare is an NFT platform that was created by combining SudoSwap and LooksRare. It is the latest cryptocurrency project to run away with user money. All of the project’s social media accounts were also taken down Tuesday morning.
On Monday, 2shabby, a tweeter handle disclosed that SudoRare might be a scam:
“Do not participate unless you want to risk losing your money. This team is anonymous and won’t dox, which means they won’t say who they are. It’s likely a scam.”
0xStanec, another Twitter user, was very suspicious and said,
“This is like a 100% scam project that noobs will fall for.”
Six hours after going live, nearly 1 million LOOKS tokens were traded for 154.5 Ethereum and another 230.6 LOOKS tokens were traded for USD Coin (USDC), which was confirmed on Etherscan.
All 519 ETH were then taken off the platform. At the time this was written, they were worth $815,000. Funds were sent to three different addresses so that both sets could be easily stolen and all traces of the project erased.
NFT platforms on High Alert
Although the industry tends to be anonymous, platforms and investors can still protect themselves. Solana’s NFT marketplace Magic Eden made it a rule that minters had to dox themselves to the platform. This was part of a plan to make the marketplace better after two high-profile rug pulls.
SudoRare used to be a platform for fully automated market makers and NFT marketplaces. It was also used to promote staking opportunities for digital currencies like XMON, LOOKS, and Wrapped Ethereum (wETH). Since SudoRare was a fork of SudoSwap and LooksRare (LOOKS was the native token of LooksRare), the platform was home to the token as well as the ones above.