The non-fungible token (NFT) project Friendsies has recently been met with controversy after the sudden announcement of a “pause” in development and the deletion of its Twitter account. Rumors have circulated that the project is a rug pull, as users who asked questions were blocked, and notable individuals who hyped the collection have been pointed at by Twitter users.
Friendsies had launched its NFTs in 2022 and managed to raise approximately $5 million with its initial drop. The LA-based art duo behind the project, Friendswithyou, aimed to mint 10,000 Friendsies, partnering with Christie’s to sell nine early-access mint passes to the collection. However, after the project’s hiatus announcement, Friendsies removed its Twitter account, and users found their accounts blocked.
In the initial announcement, Friendsies stated that market conditions were the catalyst for the collection’s pause, but this has not quelled rumors that the project is a rug pull. The collection’s floor price is currently 0.011 ETH, or around $18, with a trading volume of 3,774 ETH or approximately $6.3 million. When the collection launched, the Dutch auction opened with a starting price of 3.33 ETH, equivalent to $12,000 per token.
The project had lofty ambitions, including a play-to-earn game, a community treasury, and an expansion of the brand’s intellectual property. Unfortunately, none of these plans came to fruition. Friendsies’ sudden pause and deletion of its Twitter account have left many collectors and enthusiasts with unanswered questions and concerns about the project’s future.
Friendsies Responds
˙ᵕ˙ – Dear Community,
It is clear that we have upset many of you with the nature of our announcement, and perhaps we did not handle that in the best way possible. To be very clear, we are not abandoning fRiENDSiES. Our only intention was to be transparent and communicate with
— fRiENDSiES (@fRiENDSiES_Ai) February 21, 2023
Defining a RUG PULL
An NFT rug pull is a type of scam in which the creators of a non-fungible token (NFT) project disappear with investors’ funds or tokens after convincing them to invest in the project. The name “rug pull” is a reference to the act of pulling a rug out from under someone, as it involves suddenly and unexpectedly pulling out of the project, leaving investors with worthless NFTs and no way to recoup their investment.
The creators of an NFT rug pull may hype up the project and create a sense of urgency to invest, often promising high returns or exclusive access to rare NFTs. They may also use tactics such as limiting the supply of tokens or artificially inflating their value to create a false sense of demand. Once they have attracted enough investors, they disappear with the funds, leaving investors with worthless NFTs.
NFT rug pulls can be difficult to detect, and investors should be cautious when investing in new or unproven NFT projects. It’s essential to do thorough research and due diligence before investing in any NFT project and to be aware of the signs of a potential rug pull, such as a lack of transparency or communication from the creators, exaggerated claims or promises, and sudden and unexplained changes in the project’s direction or status.