The SnowdogDAO Case Report; How To Avoid Future Scenarios

What Happened?

The Finer Details

Arriving at the Rug Pull Conclusion

  1. Both addresses were only available a day before the buyback and funded just hours apart
  2. The accounts didn’t initiate buyback on Trader Joe but on the custom AMM made by Snowdog
  3. The password could only have been known by members of the team who may have had access just before the buyback went live.

How to Identify Rug Pulls

  • Substandard documentation: You will probably never go wrong reading through the pitch deck, litepaper, and whitepaper. These documents should be able to answer your questions. If any of these documents seem hurriedly prepared with one too many errors as it was with $SQUID, we recommend you run the other way.
  • Anonymous developers: This is one of the hallmarks of a token with a rug pull in sight. Anonymity is often a clever play by developers to embody the virtues of blockchain. Some teams are anonymous and credible; others wear the invisibility cloak to make it easier to vanish with your money.
  • A sudden increase in valuation: Now, this is sometimes a ploy by fraudsters to poke at investors’ FOMO psyche. Sudden increases are usually due to influencer marketing and buzz, and nothing genuine like groundbreaking decentralized exchange listing.
  • Unrealistic high yield percentages: If APYs and APRs are audacious, it could be genuine or not, but it is probably an attempt to draw investors searching for uncommon ROI. Take extra care when you come across such projects.
  • Flawed tokenomics model with a large percentage owned by developers: Coins with large central supply control are often scams, especially if the numbers on its whitepaper and pitch deck differ from actual token distribution. You can use Etherscan, Avascan and BSCscan to check for distribution models if the coin is based on Ether, AVAX, and Binance Smart Chain, respectively.
  • Absence of use cases or the presence of unexplainable ones: Investors are beginning to become aware that use cases are one of the pointers to a token’s credibility. That said, scammers often promise use cases and conceal them with aggressive marketing campaigns to fool investors and achieve faux credibility status.
  • Inactive community and social media channels: If a community does not support querying or questioning the project, or if community members don’t get responses to their questions, the project is most likely a scam.


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