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Recent series of Rugpulls

In recent weeks, the Cardano NFT community has witnessed a number of projects suddenly going dark and pulling the plug on its community and the holders of its digital goods, known in the Crypto community as a ‘Rug Pull’. A process where a project’s team deletes the project’s infrastructure such as the website, Social profiles and online communities. Leaving those who have invested in the project both financially and emotionally affected.

Some of the most recent projects to inflict this on its members were ‘DanoVerse’, ‘ADA Clouds’ and ‘ADA Miners’, resulting in loss for the many thousands of combined community members left holding digital tokens from now defunct projects.

Speculation has been rife as to the reasons these particular projects decided to take such disastrous action, from Cease and Desist notices to outright fraud and theft. In most cases we will likely never know, and in all probability this won’t be the last time we see such events unfold within the Cardano and wider NFT ecosystem. Due to the anonymous fashion that the vast majority of projects choose to operate in for various reasons, bringing those responsible to justice can be almost impossible.

This behaviour by certain projects highlights the importance to conduct proper research on any potential NFT project that you consider buying into. Whether that be verifying the team, and its claims or just limiting risk and exposure

On a slightly brighter note and in the spirit of the Cardano community in some cases other projects have stepped in to help, either by taking over projects and communities, to continue the development, or to offer NFTs from their own projects in exchanged for NFT’s from projects that have experienced rug pulls.

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