The developers of non-fungible token project NiftyMoji pulled an exit scam as they have closed the official website, all social media and dumped their tokens on the market. Also the associated Coinbreeder accounts have vanished. The developers ran off with an estimated amount of one million dollars.
Thursday evening European time the developers started selling all their their tokens. They have transferred approximately 237 ETH, which equals more than 82 thousand dollars. However, this was only from the sale of the BREE tokens from Coinbreeder. In addition they probably dumped around 40 thousand MEXP on the market, which probably got them close to a million dollars.
High-risk investors and NFT collectors bought Niftymoji collectibles with certain characteristics. This allowed them to mine MEXP tokens, which in turn could be use for purchases. These MEXP rewards first traded for 140 dollars a piece, before moving down to 40 dollars. In the last week of September, Niftymoji was the most traded project according to data from Nonfungible.
Some people paid more than one thousand dollar to get their hands on a Niftymoji. Keep in mind, these digital collectibles were limited in supply. Many people joined the project, which influential characters heavily shilled on Twitter. According to data from Opensea there are 600 people with Niftymoji’s in their wallets, while there are 813 wallets with MEXP.
Welcome back to exit scams
The idea came into existence over a year ago, but apparently the introduction of the MEXP token also brought too much greed. For many in the cryptocurrency space the existence of exit scams are nothing new. If you’ve been through the times of shady ICOs, incredible whitepapers and the masternodes hype, then you’ve experienced at least one exit scam.
However, for many new participants in the blockchain space, this is something quite new. Some people in the community want to revive the project themselves, while others said they were just too greedy.
The exit scam by the NiftyMoji developers is sign of how important it is that developers are visible. The rise of yield farming and non-fungible tokens is also bringing back the scammers. The incident with the SushiChef a few weeks ago was a first warning, followed by a craze into DeFi, MEME token and a drama involving a joke or scam token called FEW.