Home Cryptocurrency Avalanche’s first memecoin SDOG ends in a $30M rugpull |

Avalanche’s first memecoin SDOG ends in a $30M rugpull |

by Serge Shlykov

The memecoin SDOG was meant to be a joke, but quickly became quite valuable. Some cryptocurrencies are not as easy to mine and generate value like Bitcoin and Ether do, so this is an example of how even meme-based currencies need some regulation.

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The “nfts on avalanche” is a scam that has been going on for quite some time. The scammer promised to pay the victims with SDOG, which was an altcoin created by Avalanche. However, when SDOG ended up being worth $30M less than what the scammer promised, the victims were left out of pocket and had their life savings wiped out.

Avalanche’s first memecoin SDOG ends in a $30M rugpull |

The first memecoin to emerge on Avalanche, SnowdogDAO (SDOG), dropped almost 90% of its value yesterday in what many think was the platform’s greatest rug pull.

Despite the loss of millions of dollars in investments, the SnowdogDAO team argues that the incident was a “game-theory experiment” gone awry, rather than a rug pull.

A token meant to prevent front running is front-run by insiders.

After just 8 days on the market, SnowdogDAO, a decentralized reserve memecoin based on Avalanche, crashed tragically yesterday. SDOG, which began as an 8-day experiment and ended with a massive repurchase, drew a lot of interest from the crypto world.

The “game theory experiment” was devised, according to the development team, to raise awareness about Snowbank.

“We thought that combining a decentralized reserve meme currency that would expire after 8 days with the prospect of a massive repurchase would generate interest and exposure for the Snowbank project.”

The huge repurchase, which would be funded by assets obtained by the Snowdog treasury via mint sales, was to be the experiment’s apex. The treasury market value increased to $44 million in 8 days, allowing holders to fight for a piece of the cash during the repurchase.

Only 7% of the SDOG supply was available to be sold above market price before the repurchase, which the creators neglected to reveal to the community, or at least did not make explicit enough.

Snowdog built its own AMM based on Uniswap V2, moving all SDOG liquidity from Trader Joe, a popular Avalanche DEX, to minimize front running.

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The repurchase, on the other hand, flopped horribly within seconds of being live, with hundreds of consumers losing the bulk of their money. By exchanging SDOG for other cryptocurrencies, a single address made about $10 million, wiping off a fifth of the Treasury’s repurchase capacity.

So $SDOG @SnowdogDAO has just raked in $10.392 million in $MIM. https://t.co/jhmkeYMTHx pic.twitter.com/I5owBGO9Jw https://t.co/jhmkeYMTHx

November 26, 2021 — James (@JamesCliffyz)

The address acquired about $180,000 worth of SDOG using MIM in batches of $10,000 just before the buyback and then staked the token. They staked the monies the next day and were able to drain almost $10 million in MIM.

Using the identical approach, two more wallets were able to drain $7.7 and $3.3 million respectively.

Using the same technique, adding two more wallets cost $7.7 and 3.397 million respectively.

https://t.co/ofdfixMhZf Wallet 2 https://t.co/CZhtzUwN7z Wallet 3 pic.twitter.com/GSunhRgFT0

November 26, 2021 — James (@JamesCliffyz)

While the owners of the addresses have yet to be discovered, many assume they belonged to persons who were intimately associated with the development team.

A postmortem on Snowdog finds nothing.

Snowdog’s development team released a postmortem after receiving a lot of backlash from the crypto community. While the message was intended to emphasize that the occurrence was not a rug pull, it failed to persuade the public that the action was not organized ahead of time.

According to the researchers, they intended their AMM to be front-run by bots by providing a basic mathematical obstacle that can only be accessed via the Snowbank front-end.

“A straightforward computation once you know the criteria,” they noted in the article, “but it would take manual intervention to adjust bots, thereby allowing adequate time for human engagement before bots could join the party.” “Bots submitted unsuccessful transactions one after the other, and it worked.”

Users, on the other hand, claimed that there was no way to accomplish the challenge since starting a Snowswap contract needed a “challengeKey,” which nearly none of the users possessed.

$SDOG rugpulled by @SnowdogDAO. Here’s how to do it: 1. Announced a $40 million repurchase on its own DEX Snowswap and shifted all liquidity from Joe. 2. Snowswap contracts demand a “challengeKey” to trade, which was previously only known by insiders. 3. Insiders took advantage of the buyback and profited by $10 million. twitter.com/tfKDqA4t4I

November 25, 2021 — TechnoArtoria (,) (@artoriamaster)

Snowdog claims that they were solely liable for the issue since they failed to reveal the game’s rules:

“We appreciate that the repurchase experience was frustrating, since just 7% of supply holders benefited from a price higher than the market price before to the buyback. We apologize not having talked with you more about this. We should have forewarned the public about the dangers of waiting for the buyback to sell.”

Users who were unable to sell their SDOG, which has subsequently lost over 90% of its value, will be able to purchase some of the tokens. Snowdog claims that the cryptocurrency will have greater use on Snowbank, including SDOG-MIM minting, SDOG-MIM liquidity, Trader Joe listing, and DAO governance.

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The “czb coin” is an example of a memecoin that was built on the Ethereum blockchain. The “Avalanche’s first memecoin SDOG ends in a $30M rugpull” is an article about how the project ended with a $30M rugpull.

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