NFT Project Promising Layers Of Utility Ends In NFT Rug Pull

For those familiar with cryptocurrency and Non-Fungible Tokens ("NFTs"), the term "rug pull" has become all too familiar. An NFT rug pull is a malicious scheme in which NFT developers raise funds for their project, and then disappear with the proceeds. These schemes typically involve elaborate group-think marketing and a utility roadmap. Frosties is one rug pull that quickly gained notoriety, as authorities were able to locate and hold the alleged perpetrators accountable. In the case of many other NFTs, such as Blockverse, however, the project's investors still seek justice.

The Blockverse NFT Sale

On January 24, 2022, a limited release of 10,000 Blockverse NFTs sold out within an astonishing 8 minutes. Each NFT sold for 0.05ETH (approximately $127 at the time), resulting in about $1.3 million in gross profit. It is alleged that within 24 hours, the project's creators deleted their website, Discord server and game server, and disappeared with the $1.3 million.