NFT Rug Pull Six Hours After Launch

So it’s almost like rug pull can happen to other tokens but not NFTs, because, liquidity is locked on other tokens but not on NFTs, well unfortunately it can also happen to NFTs. With other tokens it’s expected because when liquidity is locked on other tokens, it lets the tokens get bought and sold instantly in the open market at its current price. So when the devs want to rug pull, they will just drain the liquidity off the market. But with NFTs it’s different, you have to list it at a price you want to sell it, another person needs to find it valuable enough to pay the amount listed on it. If no one finds it valuable then, sorry, you will just have jpeg token that can’t be sold.

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In NFTs there are NFTs that come as a collection and there are some that don’t, the ones that don’t come as a collection probably got bought because the buyer admired the artist art and felt they wanted to buy it. So they are buying it for personal reasons, they are buying it because they love the art, not because they want to flip it and make quick profit like others do to other NFT collections. This buyer doesn’t care about flipping, they just love the art, but people that want to make profit tend to go for NFTs that comes in a branded collection.

When people choose to invest and go for NFTs in a branded collection they want to flip it and make quick profits, so here they depend on the devs behind the collection to create utilities and use cases for the NFTs to attract more people into investing it. What happens when the devs launch an NFT, giving the investors high hope that it will create utility for it, only for the devs to go offline on all platforms? Well, this is what happened to a decentralized trading platform for an NFT, although, since its decentralized, is it part of their plan? Just like Satoshi Nakamuto left Bitcoin to the community after few months of launch.

The name of this NFT is called SudoRare but unlike Satoshi Nakamuto, this platform website went offline few hours after launch after they have made away with $800k worth of the tokens. People bought these NFTs and all of a sudden the website they bought it from has gone offline, the anonymous devs have deactivated their social media platforms, and data from peckshield is revealing how the tokens used to purchase these NFTs from the devs have been transferred to crypto exchanges for withdrawals.

Everything concerning the project has gone offline, with speculations prior to the rug pull that it looked shady because of how anonymous their devs are. Which makes me wonder, don’t other NFT projects devs start up to be anonymous at first? Like the bored ape NFT projects, were the teams known before it blew up?

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