OFF BLUE NFT Project Returns Customer Funds After Rarible Suspension
As the craziness in the DeFi market wanes, especially the mania around high APYs and yield farming cooling down, market participants have shifted their focus to non-fungible tokens (NFTs).
With the DeFi tokens down 80% to 90% in the past two months, people have to find excitement in something else.
And it was NFT, which has been seeing a lot of limelight lately. Even Christie’s sold its first NFT with Block21 at 7x the estimated price.
Ethereum’s ERC-721 standard made for DeFi degens, the fact that these digital collectibles can be used for yield farming is just cherry on the top, satisfying their appetite following the absence of food tokens every other day.
Dapper Labs has also taken advantage of the NFT trend and closed an $18 million token sale on CoinList on the back of its collectibles game, NBA Top Shot. The funds were raised with participation from 13,000 people between Sept. to Oct. 2.
Amidst this, the popular marketplace to create and sell the NFTs Rarible, which launched the first governance token RARI in this space, suspended the OFF BLUE team account over the weekend.
“We have suspended the OFF BLUE team account until further examination due to potential violations of our terms of service. Rarible is not intended to facilitate capital-raising transactions.”
The project has been accused of rug pulling millions of dollars, which has now been refunded, 1 ETH for 1 NFT, as it closes.
Going with doxxing, threaten, and cancel, FTX CEO Sam Bankman-Fried says, the internet overreacted by not going with the path of “ask questions, give feedback, wait for responses, don't buy unless/until you're comfortable.”
A few days back, Twitter user @CL, who works at Yearn.Finance, shared his conversation with Blue Kirby — who was the communications manager at the project, and later made an exit after he promoted YFI creator Andre Cronje’s Eminence.Finance, which was exploited for $16 Million — which reflects on the shadiness of the project.
— CL (@CL207) October 10, 2020
OFF BLUE's idea was to use the proceeds from their several art sales to fund a “custom platform further.” They planned to acquire some epic art, Banksy, KAWS, Warhols, to auction on OFF BLUE but didn’t communicate the game plan over the concern of someone else beating them to it. The official closure statement reads,
“This would have created unimaginable hype for OFF BLUE and positioned the decentralized Sotheby’s for long-term success.”
The team is now returning the Ether, a claim process that will go on for the next 14 days. In case one does not claim the refund, it will go towards the development of the OFF BLUE, which the team continues to build.