Another day another rug

What a bizarre day. Less than 24 hours ago two large NFT discord servers, Monkey Kingdom and Fractal were attacked. Fake announcements were posted in the announcement channel which linked to what appeared as a mint page with legit URL ended up draining away thousands of SOL.

And now, less than 2 hours since the time of writing, another supposedly OlympusDAO fork called ProsperityDAO pulled the rug. ProsperityDAO was supposed to launch in a week’s time on the 29th of December. They were having their presale starting from yesterday that is ending tomorrow. The presale was originally accessible to only the 200 whitelisted members that could purchase the tokens at $5 each for a 50% discount. A cap of $2000 was imposed on each whitelisted member, however, a day before the presale happened the admin noted that only 80% of the 200 whitelisted member filled up the google form with their wallet address. The whitelisted members voted that we should open up more slots for people that were interested so they raised the amount of tokens that will be available during the presale.

A couple of days before this presale they decided to change the presale from the original 5 BUSD to 0.01 BNB per PROSPER token. Monetarily, they are somewhat close since BNB is currently trading at $530 so that’s just $0.30 more for each token. This brought up the first red flag for me as all the existing rebase token protocols or OHM forks have their presale based on a stablecoin so that the value is stable, and for every dollar they make over the $1 backing, they were able to mint more tokens and distribute it back in the form of staking rewards. So why will they start with a PROSPER/BNB pool? The last time a project used the chain’s native token was AzuraDAO that ran away with more than 1.3 million worth of SOL.

Never mind that, maybe they just want to run it differently?

The day the presale came, the admin posted a link to their webpage that allowed users to make their purchase in the official announcement page instead of the whitelisted channel. Even the non-whitelisted members were able to access and transact on. Suddenly it was a free-for-all game? Most of the whitelisted members started questioning what was the point if everyone can make the purchase and the team said that they will consider refunding the non-whitelisted members that minted and request that they make the purchase during the public launch instead. Less than 12 hours later, another announcement was made saying that the team decided to allow everyone to go ahead with the presale launch and buy in at a discount.

This was when I realized that this is their last desperate attempt to squeeze out a bit more of that dumb money. Why would anyone continue to purchase at presale? There are 2 scenarios that could play out.

The first is, if everyone remains stupid and buys into the discount, the people that wants the token and apart of this protocol already got in. When the launch happens, everyone will have the same 5-day vesting period and then they will all begin to stake with little to no new buyers that will allow price discovery or minters to grow the treasury. This will be disastrous.

The second is, if everyone realizes this presale is stupid and decides to wait out until the actual product is available and buys at a premium. While this will save the people from getting rugged, but will severely hinder the growth of the protocol since the original liquidity pool available to the public will be small as hell.

I asked the admin openly within the whitelisted channel the moment he made the announcement for the presale but had been ignored. I tried again today after I summarized and compiled my questions into a single post and asked them again right after the decision was made to make the presale available for everyone and once again I was ignored. The server became quiet and everyone just kinda stopped trusting the project and not long after, the admin made an announcement hoping that people will trust the project even though it is not easy and that “people” will stop spreading FUD. By “people” they probably just mean me. But in my defense, I only asked legitimate questions within the whitelisted channel and not the general chat.

They just closed down everything awhile after they realized that there’s no more dumb money to milk from.

As a bonus, I have to say that this rug pull had the dumbest team I’ve seen so far. They really left the github almost empty with just a bunch of really short codes for their basic webpage and left everything about the protocol out and showed zero signs of activity. The contract address on BSCscan had a whole bunch of smart contracts deployed which I am too lazy to go through but the creator of the contract had a past transaction as shown in the picture below and they expect people to believe the developer? I’ve never seen 1 single address interacting with so many phishing sites, scam, gambling or whatever site you can think of. Kudos to this man right here and sorry to the people that donated about 60–65 BNB to this dude.

Stay safu!

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store