Pseudo Rare

Market Meditations | August 24, 2022

It’s amazing how tweaking the letters of a word can be effective in disguising its meaning. The word ‘pseudo’ is defined as “not genuine; spurious or sham”. Unfortunately, despite some Twitter warnings, users of the SudoRare platform ended up being rugged on launch day:

  • SudoRare was a decentralised NFT marketplace based on code forks of LooksRare and SudoSwap.
  • These projects provided good NFT liquidity, low gas prices and even paid users for using the platform. Users could deposit wETH, LOOKS and XMON to SudoRare for staking opportunities.
  • However, six hours after launching, the platform went offline and all of its social media accounts were deleted.
  • Sungjae alerted Twitter to the possible rug yesterday. A link to Etherscan showed the conversion of ~$800,000 of user funds to ETH and USDC on Uniswap.
  • PeckShield has started tracking the movement of the funds and Sungjae noted that one of the wallets was funded by Kraken, an exchange that requires KYC verification.
  • There had been several warnings from other Twitter users in the days leading up to the launch. User 0xStanec was convinced it was a scam, and other early supporters started to voice their concerns on launch day.

Remember to do your due diligence on new projects. Anon teams raise obvious questions, as do articles with spelling mistakes or poor grammar. Using the Wayback Machine, have a read of SudoRare’s article on their tokenomics. Does anything stand out?