NFT Rugpull: Bored Bunny NFT project drains out 2000 ETH; Floor price drops to 0.59 ETH.
Bored Bunny, an NFT project launched on January 5th i.e earlier today had raised nearly 2,000 ETH during the first few hours of it going live. However, now the project has drained out all the raised ETH, and nearly 800 ETH has been transferred to Binance.
This would be the sec0nd NFT rugpull scam within a week raising alarms in the NFT community. Earlier m0st of these scams especially rug pulls were associated with the Defi market, while the NFT ecosystem has seen a bunch of counterfeit scams.
Just a couple of weeks ago, crypto wallet may make money Twitch founder’s NFT platform Fractal suffered a $150K loss on debut when a hacker manager to pull a Discord hack on the platform. A fake Discord bot disguised as an official fractal bot encouraged people to mint nearly 3333 NFTS for 1 Solana and nearly 3500 people fell prey to it and lost nearly $600,000.
NFT hacks on the rise.
Non Fungible Tokens have been a part of the crypto ecosystem since 2012 and even though it gained some traction in terms of adoption by 2019, 2021 proved to be the breakout year. The NFT ecosystem grew to become a multi-billion dollar industry and today many popular NFT collections boast floor prices as high as $4 million. However, as has been the case with most popular use cases in crypto, invest in nft they also become a point of attraction for scammers.
Defi which had a similar breakout in 2020 has been associated with 75% of the scams in 2021 that collectively lost billions. The rising number of NFT scams and hacks also indicates a similar high. As of today the top NFT auction platform based on Ethereum sees nearly $3 billion in trading volume each month. The firm also raised over $300 million in Series C funding, giving it a valuation of over $13 billion, making it one of the most prominent NFT firms and a unicorn today. OpenSea’s valuation also reflects how fast the NFT system has evolved.
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