Let’s first start by addressing the question: What is a rug pull?
Here is a fantastic definition from Coingecko:
In normal English lexicon, to pull the rug out (from under someone) means to to suddenly take away important support (from someone). In the context of crypto and Decentralized Finance (DeFi), having been rug pulled means to have buy support or Decentralized Exchange (DEX) liquidity pool taken away from a market. This results in a sell death spiral as other liquidity provider, holder and traders sell to salvage their holdings. Typically, it is a new form of exit scamming where someone will drain the pool at DEX, leaving the token holders unable to trade.
Essentially, it means the owners take advantage of their liquidity pool (the gateway where buys and sells happen), and null their own tokens by ‘cashing out’. Scary.
The $SAFU Rugged Charity Swap is a novel idea that has never been thought of before. With the recent hype of ‘moon shot’ opportunities as well as extremely low gas fees on the Binance Smart Chain, people are tossing unbelievable amounts of money around. Some people win big, where a couple of hundred turn to thousands (or even millions), while others continue to lose money hoping for a big cash out.
Fraudulent tokens continue to pop-up left and right with no credibility, and many amateur investors (with little to no knowledge about the crypto space) are coaxed by words like “Contract has been burned, liquidity is locked, and contract has been audited”. The nature of smart contracts is that it can be seen, but little can be done besides looking at transactions that happen. It’s a giant pyramid scheme where early adopters, or ‘whales’, can manipulate the market in unbelievable ways (also make unbelievable amounts of money).
So… what’s the charity swap? Victims of chosen rugged projects will be able to turn their lifeless tokens to $SAFU (More information below). It’s like a free claimable airdrop if you’ve been rugged.
Rugged Charity Swap Information
Those who’ve been in the BSC market this year will know, there are hundreds, if not thousands of projects that have surfaced. Due to the sheer number of rugged projects, there are some requirements to be listed on to the SAFU RCS:
- At least 300 total holders of the rugged project
- At least 1 BNB valid in the LP of the rugged project
- Through revision of the project by the SAFU team
If all requirements have been met and you see your project list, here are some further requirements as a receiver of the donation:
- Your address needs to hold $SAFU
- Your address needs to be whitelisted
- All addresses will be reviewed by our team to ensure the integrity of transactions (e.g., Sending rugged tokens to multiple accounts with $SAFU).
The allocation of the giveaway will depend on the general growth of $SAFU. It’s quite simple math: The more successful $SAFU is, the more we can generously give and give. But for exact information, you will have to wait for each charity swap to know the claimable amount in $SAFU per whitelisted address. The fund for the charity will come from: 1) Marketing allocation 2) Ecosystem Reward (Transaction Tax).
You may be wondering why so strict with a giveaway? Well, mainly because there are bad people in this world. The intention of this charity swap is to give to people that need it, not for crafty people to take advantage and abuse the system :)