Hey Zombie Horde!
We’ll cut to the chase-sadly, a couple of projects that have been in the RugZombie orbit have been “rugged” (one exploit, one full-on rug pull).
While ZMBE assets were never at risk in either of these events, because we have worked with these projects in the past, we wanted to give an update on how we respond in cases like these:
The Living Dead NFT Project
TLD NFT project owner drained the community wallet of some funds/NFTs, and while the owner was very unclear about his intentions, we don’t believe this project was intended to be a rug pull from the start.
It is our assessment that the bear market conditions, combined with some possible personal needs led the owner to leave with funds, not that this was a planned and coordinated event from the beginning.
The project did not have that much money in the treasury (~5K as we can tell, small size for a project that has minted out).
This did NOT adversely impact RugZombie in any way, however, TLD NFTs are usable in the Patient Zero game, and thus we did some marketing/co-branded announcements together.
We are truly saddened when something like this happens-it just goes to show you that in web3, trust is paramount and projects should work as hard as possible to earn the trust of their users. As the RugZombie project continues its journey into decentralized ownership with our DAO and Task-Farming protocol, we are speedily working toward a future where situations like this simply cannot happen.
As a reminder, the RugZombie project token (ZMBE) was fair-launched, no pre-mining, no VC funds or pre-sales, and our treasury is guarded by a multi-signature solution that requires more than 1 party to sign off on transactions.
WNOW LP Price Exploit through CZUSD Minting Bug
WNOW is a fantastic project. It did NOT rug pull, and the product they offer truly is a great on-chain tool to see your portfolio.
A few days ago, a partner project to WNOW called CZODIAC faced an exploit in the minting of their stable coin, CZUSD.
WNOW was apparently paired with this token in a CZUSD-WNOW LP pool. The minting of excess CZUSD caused the LP price to plummet, creating a momentary drop in the price of WNOW in that pool, however, the price drop was isolated to the LP pair, and it appears the CZUSD token is heading back to its peg.
The RugZombie team is paired with BNB, and we have heavily favored our LP pool on PancakeSwap, a leading DEX on the BNBChain. While exploits on DEX like this are certainly a risk for DeFi projects, we take confidence that PCS has been the longest running DEX on the BNBChain and that the BNB Token itself has the backing of Binance.
What Can Be Done?
These events are a great reminder to do your research, trust no one and always think about security and safety when it comes to using BNBChain.
When our Zombie DAO, Alliance, and HUB Launch in 2023, you will have even more tools at your disposal to protect projects from exploit.
Our team will be contacting all 3 projects listed here (CZodiac, WNOW, and TLD community) to see if there is a way we can assist in protecting users, either with our Alliance next year, or some other way.
Stay Safe Zombies!