Common Questions and Answers
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As more and more new users get acquainted to RugZombie, we wanted to answer some questions token holders may have about our platform. This isn’t exhaustive, but we hope it helps.
Why Binance Smart Chain (BSC)?
Scammed projects are prolific in DeFi, and regardless of the blockchain, as long as decentralization is around, there will be opportunists who want to act in bad faith. While ERC-20 tokens and DeFi on the Ethereum network are prevalent, we believe the barrier of high gas fees and greater costs to run a project on the Ethereum network means that BSC is actually a higher risk blockchain than ETH for rug pulls at our initial launch. The cost of running a new project on BSC is significantly lower due to the lower cost in fees, large amount of transactions and the lower barrier of entry for inexperienced DeFi users and retail investors.
We may move cross-chain in the future on our mission to zombify the blockchain world, but we are beginning with the BSC. Potential cross-chain exploration could happen on Polygon/MATIC, FTM, ONE and other popular platforms.
Why does your project have “rug” in the title? Isn’t that bad form?
We chose the project name from a few others. Sure, there may have been a better name. There are certainly worse ones. We needed to capture both our undead/resurrection theme and remain clear about our mission to restore value to victims of rug pulls. We think our name does that.
We believe the transparency and hard work our team displays every day can give users confidence that we are accomplishing our mission: restoring value to victims of rug pulls, scams and hacks.
We may or may not discuss a branding change in the future as our ecosystem grows, but at the heart of our project is redemptive and restorative purpose.
Bottom line is we are not changing the name for the time being, so you’re kinda stuck with us.
Doesn’t your project inversely promote scams or rugged tokens?
Not really. Due to our tokenomics and thoughtful selection process (more info on both will be available on all our socials), hackers, bad devs and the like are unlikely to benefit substantially (if at all) from our project.
The scammed tokens are generally used ONLY to verify you have been rugged and do not require investors to own more than one of the token. This will hardly have any effect on most markets that have millions of tokens in circulation.
*We are not financial advisors, however, we do not encourage the buying of known rug-pulled or scammed tokens. Invest with caution.
Here are a few attack vectors for rug-pulls and some scenarios in which they would “play out” with RugZombie.
example a: a flash loan hack that allows a hacker to control a major portion of the hacked token.
In this example, as in all examples, this hacker would have no way of predicting that we would open a grave or tomb for this project. And even if we were to list this project in our grave, the hacker’s substantial amount of tokens would not benefit them as our graves use the rugged token as verification only. Let’s pretend said hacker minted 1 million tokens and controlled that supply with a token price of .01 $BUSD. With the token price being so low, and with the volume being low as it is, the number of transactions that would need to happen for him to profit substantially would be magnitudes higher than the actual user demand. The cost to benefit ratio is just not in favor of this individual.
example b: a scam project intentionally soft rug pulls a locked liquidity token (we will call $RUG) by dumping their developer wallet or treasury. RugZombie lists this token in their TOMB.
The soft-rug is a common exit scam in crypto. Dumping a substantial portion of their developer wallets leaves these rug-pulling developers without any substantial position of their created token. These large transactions can be tracked on bscscan quite easily. There are many on-chain metrics that can be used to autopsy these events.
In order to benefit financially from any appreciation in value for $RUG, the bad dev would have to buy $RUG off the open market, raising his initial investor value by creating buying pressure, transaction volume and liquidity. While it’s possible this dev could buy our token and $RUG to stake an LP on our platform, this also would simultaneously raise the investor value of RugZombie and the $RUG (thereby rewarding victims of this “rug”) as it would effectively take $RUG out of circulation, create buying pressure, and provide extra liquidity for $RUG (not to mention, giving victims transaction fees in their LP rewards); thus, in either case, if RugZombie inadvertently creates value for rugged projects, this helps the victims substantially more than the scammers. It must be noted that we are HIGHLY selective on which tokens will be in our TOMBS and projects where developers are known to control a large portion of the supply are simply not eligible.
See more about RugZombie in our other posts on Publish0x:
See more about RugZombie in our other posts on Medium or Publish0x:
The information shared in these docs, our roadmap, our lite paper and white paper, and social channels such as this blog, is not financial advice and should not be misconstrued as such. The primary purpose of these documents is to provide potential token holders with pertinent information in order for them to thoroughly analyze the project and make an informed decision. Engaging in cryptocurrency projects involves substantial risk and it is strongly advised that you consult with a financial professional prior to your participation. These documents do not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. Neither RugZombie nor any of its contributors or creators shall be held liable or responsible for any errors or omissions concerning this project or for any damage you may suffer from your participation or as a result of failing to seek competent financial advice from a financial professional. This white paper is not in any way intended to create or put into implicit effect any elements of a contractual relationship.
Originally published at https://www.publish0x.com.