Renowned blockchain sleuth ZachXBT recently pointed a finger at the NFT venture, Pixel Penguin, accusing it of operating a ‘charity rug pull’. The project garnered considerable notice when Andrew Wang, a notable Web3 influencer, suggested the initiative aimed to support a cancer-stricken woman, named Sara.
“I’ll put my rep on the line to say this is for real amidst all the scams in our space”
It turns out she stole the art and deactivated her account. pic.twitter.com/q4HivGBLMY
— ZachXBT (@zachxbt) May 31, 2023
Luring Investment through Philanthropy
This NFT project entered the spotlight following praise from respected Web3 influencer, Andrew Wang. He portrayed Pixel Penguin as a philanthropic endeavor aimed at assisting a woman engaged in a challenging battle with cancer. This commendable narrative quickly garnered attention, leading to a swift sell-out of the NFTs.
Unraveling Deceit and Plagiarism
However, the community soon stumbled upon unsettling revelations about the project’s creator. Allegedly, the artist behind Pixel Penguin, known by their handle @Hopeexist1, had a previous record of dealing in stolen art. Upon such exposure, a stark fall was observed in the floor price of Pixel Penguin NFTs, fueling the growing uncertainty within the community.
Exposing the Rug Pull
ZachXBT’s investigation dug deeper into the project, revealing unsettling truths about Pixel Penguin’s financial activities. He discovered over $117,000 in ETH residing in the project’s smart contract, subsequently tracing transactions that funneled these funds into two fresh wallets. In an apparent attempt to evade the mounting scrutiny, @Hopeexist1 abruptly deleted their Twitter account.
Lessons for the Crypto World
This incident highlights the inherent risks within the digital art domain and the potential for misuse of trust. It underscores the necessity of due diligence before endorsing or investing in artists or projects. Notably, the lack of adequate verification by influential figures like Andrew Wang illuminates the potential dangers lurking in the burgeoning crypto industry.
In conclusion, the Pixel Penguin debacle serves as a cautionary tale for both investors and influencers. It reinforces the significance of research and prudence when navigating the dynamic, yet challenging landscape of the crypto art space.
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