NFT Community Comes Together Amid $1.3 Million Frosties NFT RugPull

January 15, 2022, 10:00 AM AEST - 2 days ago

Another non-fungible token project has pulled the rug on its investors, stealing at least US$1.3 million out of their pockets, in the first NFT scam of 2022.

Developers from Frosties NFT Vanished, Community Tries to Fight Back

As per a report from Business Insider, the developers of an NFT project called Frosties disappeared after investors bought all 8,888 available tokens on OpenSea. The NFTs were sold out just 40 minutes after the drop, and had an average floor price of 0.04 Ether (ETH), or US$121 at the time.

The majority of the funds were transferred out of the developers’ original wallet, as noted in the Etherscan report. As usual, the project erased all traces of them on social media, deleting Twitter, Discord, and the official website. The developers’ wallet was also removed from the collection’s landing page on OpenSea.

Now the Frosties community is coming together to plan a way to recover their funds. Many members are flocking to a recently created Discord channel to help each other out, starting by wrapping their NFTs to stop devs from getting sale royalties:

Always Invest Only What You Can Afford To Lose

After the news emerged, some members of the NFT community were asking for a way to apply KYC (Know Your Customer) procedures to teams behind crypto projects.

But NFT scams will continue in the space as long as people are willing to stake their money. This is why the perennial advice is to only invest money you can afford to lose, and especially do your own research before jumping into a new project.

One of the most recent NFT rugpulls occurred on the Solana network last month when SolGame, a decentralised P2E (Play-2-Earn) NFT project, shut down its Discord channel and official website. Some members are still looking for the creator of the project, but no light has been shed up to now.

Another controversial NFT rugpull from 2021 was presumed to have been performed by a 17-year-old 3D artist. As Crypto News Australia reported in October, the teenage developer stole US$500,000 through Iconic Sol, an NFT project on the Solana blockchain.

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.