- RadRugs helps protect users from bad actors running fraudulent NFTs
- 5,555 Solana NFTs gives users access to premium features to their ecosystem
- Holders will be the driving force behind reviewing projects
Nearly every crypto investor has a horror story about buying into a project that turned out to be nothing more than a scam.
Losing hard-earned money to a scam is enough to turn some people away from cryptocurrency and NFTs for good.
Luckily, RadRugs has developed a unique project on the Solana blockchain that aims to help people deal with losses from rug pulls.
What is a rug pull?
A rug pull is a type of scam in which someone creates a token, allows tons of people to buy into it, and then walks away with the money they’ve made.
In some cases, the token creator may keep most of the token supply — then, when the value of their tokens increases, they simply sell all of their tokens for a profit.
In other cases, the token creator may control most of the token’s liquidity pool.
As people buy the scam tokens, the pool’s ratio shifts so that it is mostly Solana or whatever token people use to buy and sell the coin.
Once the pool reaches the scammer’s desired ratio, they simply pull their tokens and disappear.
Regarding NFTs, rug pulls usually involve someone creating an NFT series, only to abandon it right after minting.
In these cases, people who paid hundreds of dollars or more for their NFT are left holding a digital asset that is essentially worthless.
How Does RadRugs Help?
First and foremost, RadRugs is building a community-driven ranking system in which projects are given a safety score.
This safety ranking will create a safer environment for buyers.
The ranking system is divided into several categories, such as innovative team, trustworthy team, unique art, fundamentals, social, and community.
When a project meets a defined threshold in one of these categories, they receive a badge on the RadRugs site to let buyers know the project is trustworthy.
The V1 ranking leaderboard was released in November 2021.
The team updated the ranking system in December 2021 and plans to begin supporting other blockchains sometime in 2022.
Another way RadRugs aims to help people harmed by rug pulls is by giving RadRugs NFTs to victims.
The team designed 5,555 NFTs on the Solana blockchain, some of which will be distributed to rug pull victims.
Each NFT features a unique digital drawing of a rug.
Some rugs feature designs you’d expect to see on a rug, such as moons, suns, and intricate patterns.
Others feature handheld gaming systems, aliens, and other exciting designs.
RadRugs holders also get to take part in the RadRugs DAO and unlock special perks within the project’s ecosystem.
Holders will be the driving force behind reviewing projects and developing a compensation program for victims.
The NFTs launched in December 2021 and are currently available on Magic Eden.
The current floor price for a RadRugs is 0.70 SOL, worth roughly $102.55.