Bored Bunny, an NFT project launched on January 5th, earlier today, raised nearly 2,000 ETH in the first few hours it went live. However, the project has now withdrawn all of the ETH raised and nearly 800 ETH has been transferred to Binance. The project has muted all of its channels on Discord, and the floor price for the project has dropped to 90.59 ETH.
昨晚 火爆 的 #BoredBunny3D
特 ID:@BoredBunnyNFT
DC: https://t.co/y5z6vjPydp
: https://t.co/emZwy23skw
Operating system: https://t.co/0RE8I9CGTi
地址: 0x9372b371196751dd2F603729Ae8D8014BbeB07f6– rnmtq.eth (@ 0xRNMTQ) January 5, 2022
This will be the 2nd NFT rugpull scam within a week that has raised alarm in the NFT community. Prior to this, the m0st of these scams, especially carpet pulling was associated with the Defi market, while the NFT ecosystem saw a flurry of counterfeiting scams.
Just a few weeks ago, the Twitch founder’s NFT platform, Fractal, suffered a $150k loss on launch when a hacker manager performed a Discord hack on the platform. A fake Discord bot disguised as an official fractal bot incentivized people to earn almost 3333 NFTS for 1 Solana and almost 3500 people fell prey to it and lost almost $600,000.
Good, @justinkan‘S @fractalwagmi going well…
Their actual Discord bot was hacked incentivizing people to earn 3333 NFT for 1 Solana ($177 each Solana).
But the link is with Fractai, not Fractal… 3294 only costs almost $600,000 combined. pic.twitter.com/mnSaa0wOnp
– Zach Bussey (@zachbussey) December 21, 2021
NFT hacks are on the rise
Non Fungible Tokens have been part of the crypto ecosystem since 2012, and although it gained some traction in terms of adoption in 2019, 2021 has proven to be a breakout year. The NFT ecosystem has grown to become a multi-billion dollar industry and today many popular NFT collectibles boast price floors as high as $4 million. However, as is the case with most common use cases in cryptocurrencies, they also become an attraction for scammers.
Defi had a similar breakout in 2020 that was involved in 75% of scams in 2021 costing billions of dollars in total. The growing number of NFT scams and hacks also shows a similar high. As of today, the leading Ethereum-based NFT auction platform has a trading volume of nearly $3 billion per month. The company has 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 companies and a unicorn today. OpenSea’s valuation also reflects how quickly the NFT system has evolved.