SudoRare, an NFT platform forked from SudoSwap and LooksRare, is the latest crypto project to steal users’ money. Tuesday morning, the project also deleted all of its social media accounts.
SudoRare was a platform for automated market makers and an NFT marketplace that advertised staking opportunities for assets such as Wrapped Ethereum (wETH), LOOKS, and XMON. LooksRare’s native token is LOOKS, a fork of the leading NFT marketplace OpenSea.
On Etherscan, nearly 1 million LOOKS tokens were swapped into 154.5 Ethereum, and another 230.6 LOOKS tokens into USD Coin (USDC) six hours after they went live. All 519 ETH, worth $815,000 at the time of writing, were removed from the platform.
According to PeckShieldAlert on Twitter, funds were sent to three different addresses to drain both funds, with no trace of the project remaining.
Many people in the Crypto Twitter community were skeptical, with 2shabby tweeting on Monday that SudoRare could be a scam, saying, “Don’t participate unless you want to risk losing your money.” This team is [anonymous], will not dox [disclose their identities], and the likelihood of a scam is high.”
Another Twitter user, 0xStanec, was skeptical, saying, “This is like a 1,001% scam project that noobs will fall for.”
Platforms for NFT are on high alert.
Despite the industry’s inherent anonymity, there are ways for both platforms and investors to protect themselves.
As part of an improvement plan following two high-profile rug pulls, Solana’s NFT marketplace Magic Eden implemented a policy requiring minters to dox themselves to the platform.
In response to the most recent Sudorare event, SeaCows NFT, another decentralized NFT AMM platform, tweeted: “This stinks. Conduct your research and hold teams accountable to high levels of security and transparency.”