Feb 2022 - Lana Rhoades Alleged Rug Pull - $1.5m (Global)
"NFTs are one-of-a-kind blockchain tokens that represent ownership of an item, most commonly digital art." "Cryptocurrencies have been entangled with the grownup movie trade for years now, with some like Pornhub solely accepting crypto for premium providers and others like OnlyFans turned to crypto after being booted out by banking companions."
"Crypto Sis is a collection of 6,069 unique NFT's based on Lana Rhoades. There are countless possibilities of what token you might get! Each Tokenized Lana is algorithmically generated with special accessories which will all contribute to the creation of each unique piece. Don’t miss out on the chance to own the most unique collection out there!"
"The NFT project, CryptoSis, features a collection of 10,000 cartoon images of the 25-year old influencer, which she pitched as a "valuable investment" and never as digital artworks." "Rhoades touted her CryptoSis initiative regularly on her verified Instagram account, which has 16.8 million followers, and on her now-defunct Twitter account, which had 1.5 million followers." "It’s a one-of-a-kind NFT collection and the first to be developed by an adult film star entering the metaverse. It’s an interesting and promising collection with the potential to become the next big thing."
"Miss Rhoades, a former adult actress and now full time crypto day trader told her audience that she got the Nothing Coin logo tattooed on her butt."
"Rhoades stated on social media that she wanted to make her NFT project a “profitable investment for holders” and that her major goal was to “increase the value” of her NFTs. She also promised unique future drops, real products, and direct contacts with her and other “CryptoSis models” in the “metaverse” to holders."
"The CryptoSis admin team is intensely working on adding more drops with a plan to work with every girl in the adult industry. Lana states they are in the advanced stages of working with Mia Malkova, the next confirmed drop. They are also planning to collaborate with other stars like Riley Reid and Abella Danger who are hugely popular in the adult industry."
"The roadmap included plans to reward investors with various incentives after the NFT sales reached a certain level. She promised the holders to increase the price of the CryptoSis NFTs and guaranteed that they would sell for more than the mint price. Rhodes's promises included pieces of LAND in famous metaverse projects like The Sandbox and Decentraland. In another one of her social media posts, she added that the CryptoSis brand and its price would grow as other models have signed to design their lines."
"Excited to announce I’ve partnered with $PAWG!! The future of this coin looks so bright."
"A transformative NFT, CryptoSis also attracts a massive fan base, with more traders showing positive interest in investing. The CryptoSis account with Discord has exponentially grown with over 10k members each day coming on board naturally. Essentially, their Discord grew to over 100k members in a record seven days after its launch. The CryptoSis TikTok account is also buzzing with activity and has grown to over 50K followers in a record 48 hours after its launch. One of the TikTok videos has gone viral with over 3 million views, with the numbers still increasing."
"This is a positive sign for the young NFTs collection, keeping in mind no paid promotion has ever been run. It’s a natural growth brought about by word-of-mouth marketing and posts by Lana. The ambitious actor seeks to leverage her fame and status to develop more important partnerships. You also have the opportunity to chat directly with Lana in her general chat as well as attend her AMA’s."
"In January, Lana Rhoades promised her followers that her NFTs would be valuable, stating, “The value is going to go way up over the next few months.” She assured everyone that “this is just the beginning of the brand.”"
"Rhoades initially stated on the NFT project’s official Discord server that “we will probably sell out quickly.”"
"When the collection did not sell out fast, the overall collection size was cut to 6,969, then to 6,069 to boost the likelihood of it doing so. On January 22, Rhoades attempted to reassure her followers, tweeting, “We will be sold out by tomorrow and working on the next phase of the plan.”"
"Rhoades first told her community that her venture was a “lucrative investment,” but later backtracked, saying she wasn’t sure she could “turn this investment around” or “make people profit.” She also looked to be quitting her own NFT project, stating that it was up to her community to contribute value to the initiative in the future."
"However, one week after the launch, Rhodes abandoned the project and disappeared from the CryptoSis Discord server. According to Etherscan, she took about $1.5 million (or 509 Ethereum) with her."
"Some have criticized the CryptoSis NFT project for being a hoax after funds from the mint were cashed out, and Rhoades has stated that she may be removing her Discord app and separating herself from the project. The project’s Discord group is still operational as of now."
"Her followers and the broader crypto group haven’t taken kindly to it. One of many purchasers mentioned that he invested $4,000 out of the $6,000 he had saved up and misplaced nearly all of it. The investor claimed to be jobless and with a two-year-old son. “If solely somebody purchased my Christmas Lana,” he posted, referring to the NFTs."
"Lana Rhoades’ NFTs currently have a current floor price (minimum “buy now” price) of 0.01 ETH ($26) on OpenSea, which is much lower than their original mint price of 0.1 ETH ($261)."
"Coffeezilla, a well-liked YouTuber who busts on-line scammers, tore into Rhoades in a video this week, calling her out for making guarantees to traders and falling by way of."
"Rhoades tweeted a series of furious tweets in reaction to YouTuber Coffeezilla’s video dubbing Rhoades’ CryptoSis project a rug pull, before seemingly deactivating her account. “I have never and will never scam anyone, I don’t need to,” Rhoades said of YouTubers."
"Rhoades responded to a Twitter user who told her to “stop doing NFTs,” saying, “Trust me, I don’t want anything to do with the space anymore.”"
"Rhoades hinted that she’ll keep the proceeds from the project’s mint, citing the necessity to pay the production crew. Going forward, it’s unknown how often she’ll participate in her NFT community’s Discord, which she claims will be restricted to holders only."
"Rhoades deleted her social media handles and the TikTok videos in which she promoted the project."
Further Analysis
Lana Rhoades created her own brand of NFT, and made promises to investors online. The market uptake of her NFTs was less than predicted, and investors started to complain after Lana Rhoades liquidated $1.5m, apparently to pay her team. Some even accused her of scamming them, including influential Coffeezilla. Following this, Lana went on the defensive on Twitter with multiple tweets, and ultimately deleted her Twitter account. Investors remain with their NFTs, though there is $1.5m less in liquidity and Lana Rhoades does not appear to be participating in any further promotions.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
Ariva Digital Key Breached > > < < Flurry Finance Vault Flash Loan Attack
Sources/Further Reading
Lana Rhoades Rug Pulled Me - YouTube (Feb 23)
LANA RHOADES( LANA ) info, LANA RHOADES( LANA ) chart, market cap, and price | TheBitTimes.Com (Feb 26)
Lana Rhoades Gets A Nothing Coin Tattoo On Her Butt - The Stonk Market (Feb 26)
https://www.facebook.com/xLanaRhoades/posts/excited-to-announce-ive-partnered-with-pawg-the-future-of-this-coin-looks-so-bri/1589311267938758/ (Feb 26)
https://www.facebook.com/xLanaRhoades/ (Feb 26)
LANA RHOADES vs BITCOIN - Which is More Popular? - YouTube (Feb 26)
https://opensea.io/collection/officialcryptosis (Feb 26)
Reddit - Dive into anything (Feb 26)
@litcapital Twitter (Feb 26)
Adult film star Lana Rhoades deletes social media accounts after ‘rug pulling’ her NFT project (Mar 1)
https://beincrypto.com/porn-star-lana-rhoades-makes-off-with-1-5m-in-apparent-nft-scam/ (Mar 7)
Lana Rhoades Deleted Account On Twitter After NFT Project Rug Pull (Mar 7)
Cryptocurrency Discussion: So Lana Rhoades Pulled Off Her Rugpull Non-Fungible Token… - PumpDumpCoin.com (Mar 7)
Porn actress Lana Rhoades apparently abandons her NFT project after its launch – Web3 Is Going Just Great (Mar 7)
Famous porn star scams her community, runs away with $1.5 million | TweakTown (Mar 7)
Lana Rhoades Deletes Twitter Account After Allegedly 'Rug Pulling' Her NFT Project - Decrypt | Flipboard (Mar 7)
Grownup Movie Star Lana Rhoades Raises $1.5M From NFTs, Then Rug Pulls (Mar 7)
Adult Film Star Lana Rhoades Deletes Twitter Account After NFT Project Was Criticized – Bitcoin News (Mar 7)
What went wrong with Lana Rhoades NFT debut and is rug pull inbound? | NFTandGameFi (Mar 7)
How to Buy Lana Rhoades’s NFTs (Mar 7)
Porn star Lana Rhoades 'takes $1.5million in crypto out of failed NFT project' as followers brand it a 'scam' (Mar 7)
Lana Rhoades Deletes Her Twitter Account Following Allegations of 'Rug Pulling' Her NFT Project - CoinCu News (Mar 7)
Adult film star Lana Rhoades raises $1.5M from NFTs, then rug pulls (Mar 7)
Reddit - Dive into anything (Mar 7)
Lana Rhoades Deletes Her Twitter Holders Call Her NFT A Rugpull (Mar 7)
Lana Rhoades CryptoSis 1.5 Million USD Rug Pull | HYPEBEAST (Mar 7)
Lana Rhoades Deletes Twitter Account After Allegedly 'Rug Pulling' Her NFT Project - Decrypt (Mar 7)
Lana Rhoades Rug Pulled NFT - YouTube (Jun 26)
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