The developers of an NFT collection called Frosties vanished in a potential ‘rug pull’ after buyers put in $1.3 million | Currency News | Financial and Business News

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  • The developers of an NFT collection called Frosties disappeared in a potential “carpet pull”.
  • The anonymous creators disappeared on their investors who had bought the 8,888 tokens, according to Blockworks.
  • A stack draw is a type of scam where creators quickly cash in their winnings after starting a crypto project.
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The developers of a non-fungible token collection called Frosties disappeared in a potential ‘carpet pull’ after buyers invested $ 1.3 million in the digital collectible.

The anonymous creators are said to have disappeared on their investors who bought the 8,888 tokens on Jan.9 through OpenSea, according to Blockworks, less than an hour after the fall of the cartoon ice cream collection.

It is estimated that the creators made $ 1.3 million in Ethereum based on its wallet. At that time, the tokens had an average floor price of 0.04 ETH (around $ 135). At the time of publication, it has slipped to 0.002 ETH (around $ 7).

The Frosties incident may be one of the first known carpet draws this year, a type of scam in which creators quickly cash in their winnings after launching what appears to be a legitimate crypto project.

Currently, the developers of Frosties have shut down their Twitter, Discord, and website, and removed their portfolio from OpenSea, Blockworks reported.

But the supposed victims of the scam were not discouraged. Many flocked to a new Discord group immediately after the incident in an attempt to “disassociate the Frosties” and get their funds back.

NFTs – digital representations of artwork, sports cards, or other blockchain-related collectibles – have grown in popularity over the past year, as investors from Wall Street and Hollywood they are engaged.

And as the market continues to thrive, scams are on the rise as well. Last year, the estimated value of carpet-pulling scams was $ 2.8 billion, according to Chainsalysis.

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