SNEAK PEEK:
- Friendsies.ai project experienced a $5.3m rug pull, leaving investors in the dark.
- The project’s developers cited market volatility as the cause and temporarily paused future products.
- Twitter users point fingers at hosts and artists for hyping the collection.
ZachXBT, an internet detective, revealed in a tweet earlier today that the Friendsies.ai project encountered a strong rug pull, resulting in the disappearance of $5.3 million in investment funds.
With the $5.3m @friendsies_ai hard rug earlier today it remains unclear how the funds could’ve possibly been spent.
There have been no announcements since September, no community treasury, and no P2E game.
The team blames “market volatility” as their rationale. pic.twitter.com/FM8ytum4Ur
— ZachXBT (@zachxbt) February 21, 2023
Moreover, he noted that it is presently unknown where the lost monies have been spent, as there have been no statements from the team since September and no P2E game or community treasury has been built.
The Friendsies team further cited market volatility as the cause of the rug pulls, leaving investors perplexed about how and why their money vanished. The occurrence happened today, but the timeframe leading up to the strong rug pull is unknown.
Later, the NFT project’s developers tweeted to their followers that Friendsies and all future digital products would be put on hold temporarily owing to market issues.
However, the project’s developer, Friendswithyou, made their account private roughly a few minutes after the Twitter account was removed, which led to claims that the creators had rugged for $5 million.
Twitter users also pointed fingers at Farokh, host of the Web3 show Rug Radio, and generative artist Jen Stark, who both hyped the collection on Twitter in its early days.
In light of the Friendsies, OpenSea’s statistics show that the collection’s floor price is now 0.0142 ETH with a trading volume of 3,776 ETH. At the beginning of the minting process, the Dutch auction began at a price of 3.33 ETH.
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- Source: https://investorbites.com/friendsiess-5-3m-conundrum-a-cautionary-tale-of-defi-investing/
