Learn about the concept of "rug pulls" within the web3 community and discover how you can report such incidents to Magic Eden. Ensuring the safety of our users is our top priority.
What are "Rug Pulls"?
"Rug pulls" encompass a wide range of deceptive practices within the web3 space. These may involve NFT creators engaging in fraudulent behavior, abruptly ending projects after minting, deleting online presence, being unresponsive, or participating in activities that resemble scams.
The Seriousness of Rug Pulls
Rug pulls are highly scrutinized, and it is crucial for NFT creators to understand their responsibilities when offering collections to the public. The web3 community is rightfully moving towards a more stringent environment to combat rug pulls.
Guidance for Creators
We encourage creators to refer to our guidelines on Launchpad, titled "Magic Eden's Guidelines for Launchpad." While these guidelines primarily apply to projects using Launchpad, creators who choose to mint on their own websites or other platforms can also benefit from considering these principles.
Reporting a Rug Risk
To report potential rug pulls, the decentralized nature of web3 encourages community members to assist in identifying and exposing such incidents. On a collection's page, click on the burger icon located at the upper right-hand side, which will reveal the flag icon. Select the appropriate option to submit a report. We thoroughly review all reports received and take necessary actions, which may include permanently flagging or removing the collection.
Magic Eden's User Protection Measures
At Magic Eden, we believe in empowering the community to decide which projects to collect and enjoy. However, we also strive to protect our users from obvious scams and serial ruggers.
If we identify signals indicating a high rug risk for a project applying to list on Magic Eden (e.g., past instances of rug pulling by the project founder), we reserve the right to reject the application and blacklist the creator and associated accounts.
Furthermore, if we detect questionable practices like wash trading (repeatedly buying and selling NFTs to inflate sales), or market manipulation (artificially inflating sales), we may flag their collection page, or delist their collection from our platform.
By understanding the concept of "rug pulls" and actively reporting any potential risks to Magic Eden, you contribute to the overall safety and integrity of our community. We value the vigilance of our users and strive to protect them from scams and fraudulent activities. Together, we can foster a secure and trustworthy environment within the web3 space.