Lana Rhoades Alleged Rug Pull

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Lana Rhoades on OpenSea

Lana Rhoades created her own brand of NFT, and made promises to investors online. The market uptake of her NFTs was less than predicted, and investors started to complain after Lana Rhoades liquidated $1.5m, apparently to pay her team. Some even accused her of scamming them, including influential Coffeezilla. Following this, Lana went on the defensive on Twitter with multiple tweets, and ultimately deleted her Twitter account. Investors remain with their NFTs, though there is $1.5m less in liquidity and Lana Rhoades does not appear to be participating in any further promotions.

This is a global/international case not involving a specific country.

About Lana Rhoades

"Miss Rhoades, a former adult actress and now full time crypto day trader told her audience that she got the Nothing Coin logo tattooed on her butt."

About Crypto Sis Collection

"Rhoades stated on social media that she wanted to make her NFT project a “profitable investment for holders” and that her major goal was to “increase the value” of her NFTs. She also promised unique future drops, real products, and direct contacts with her and other “CryptoSis models” in the “metaverse” to holders." "NFTs are one-of-a-kind blockchain tokens that represent ownership of an item, most commonly digital art." "Cryptocurrencies have been entangled with the grownup movie trade for years now, with some like Pornhub solely accepting crypto for premium providers and others like OnlyFans turned to crypto after being booted out by banking companions." "Crypto Sis is a collection of 6,069 unique NFT's based on Lana Rhoades. There are countless possibilities of what token you might get! Each Tokenized Lana is algorithmically generated with special accessories which will all contribute to the creation of each unique piece. Don’t miss out on the chance to own the most unique collection out there!"

"The NFT project, CryptoSis, features a collection of 10,000 cartoon images of the 25-year old influencer, which she pitched as a "valuable investment" and never as digital artworks." "Rhoades touted her CryptoSis initiative regularly on her verified Instagram account, which has 16.8 million followers, and on her now-defunct Twitter account, which had 1.5 million followers." "It’s a one-of-a-kind NFT collection and the first to be developed by an adult film star entering the metaverse. It’s an interesting and promising collection with the potential to become the next big thing."

Team Roadmap and Partnerships

"The CryptoSis admin team is intensely working on adding more drops with a plan to work with every girl in the adult industry. Lana states they are in the advanced stages of working with Mia Malkova, the next confirmed drop. They are also planning to collaborate with other stars like Riley Reid and Abella Danger who are hugely popular in the adult industry."

"The roadmap included plans to reward investors with various incentives after the NFT sales reached a certain level. She promised the holders to increase the price of the CryptoSis NFTs and guaranteed that they would sell for more than the mint price. Rhodes's promises included pieces of LAND in famous metaverse projects like The Sandbox and Decentraland. In another one of her social media posts, she added that the CryptoSis brand and its price would grow as other models have signed to design their lines."

"Excited to announce I’ve partnered with $PAWG!! The future of this coin looks so bright."

Reported NFT Popularity

"A transformative NFT, CryptoSis also attracts a massive fan base, with more traders showing positive interest in investing. The CryptoSis account with Discord has exponentially grown with over 10k members each day coming on board naturally. Essentially, their Discord grew to over 100k members in a record seven days after its launch. The CryptoSis TikTok account is also buzzing with activity and has grown to over 50K followers in a record 48 hours after its launch. One of the TikTok videos has gone viral with over 3 million views, with the numbers still increasing."

"This is a positive sign for the young NFTs collection, keeping in mind no paid promotion has ever been run. It’s a natural growth brought about by word-of-mouth marketing and posts by Lana. The ambitious actor seeks to leverage her fame and status to develop more important partnerships. You also have the opportunity to chat directly with Lana in her general chat as well as attend her AMA’s."

"In January, Lana Rhoades promised her followers that her NFTs would be valuable, stating, “The value is going to go way up over the next few months.” She assured everyone that “this is just the beginning of the brand.”"

"Rhoades initially stated on the NFT project’s official Discord server that “we will probably sell out quickly.”"

Crypto News Flash reports that adult film star Lana Rhoades raised $1.5 million from her NFT project called CryptoSis, but she is accused of performing a "rug pull" and disappearing with the money. She had been promoting the NFT collection for months on her social media accounts, claiming it would be a lucrative investment for holders. However, after the launch, the NFTs' value plummeted, and their current price is 90% below the original value. Rhoades defended her actions on Discord, stating that she needed to pay developers. Many fans and the crypto community are upset and feel deceived by her promises and actions. A popular YouTuber, Coffeezilla, also criticized Rhoades for not fulfilling her commitments to investors.

CoinCu reports that Lana Rhoades, a popular adult film star, deleted her Twitter account after facing allegations of "rug pulling" her NFT project called CryptoSis. The NFTs' value fell significantly after she pitched them as a "profitable investment for holders." Rhoades had promoted the NFT collection on her Instagram account with 16.8 million followers and her now-deleted Twitter account with 1.5 million followers. She initially claimed that the NFTs would sell out quickly and increase in value, but when they didn't, she reduced the collection size to boost sales. Rhoades responded with a series of furious tweets to criticism, stating that she would never scam anyone and that she needed to pay the production crew. She hinted at keeping the proceeds from the mint but might separate herself from the project.

The Reality

Decrease To Collection Size

"When the collection did not sell out fast, the overall collection size was cut to 6,969, then to 6,069 to boost the likelihood of it doing so. On January 22, Rhoades attempted to reassure her followers, tweeting, “We will be sold out by tomorrow and working on the next phase of the plan.”"

"Rhoades first told her community that her venture was a “lucrative investment,” but later backtracked, saying she wasn’t sure she could “turn this investment around” or “make people profit.” She also looked to be quitting her own NFT project, stating that it was up to her community to contribute value to the initiative in the future."

"However, one week after the launch, Rhodes abandoned the project and disappeared from the CryptoSis Discord server. According to Etherscan, she took about $1.5 million (or 509 Ethereum) with her."

"Some have criticized the CryptoSis NFT project for being a hoax after funds from the mint were cashed out, and Rhoades has stated that she may be removing her Discord app and separating herself from the project. The project’s Discord group is still operational as of now."

"Her followers and the broader crypto group haven’t taken kindly to it. One of many purchasers mentioned that he invested $4,000 out of the $6,000 he had saved up and misplaced nearly all of it. The investor claimed to be jobless and with a two-year-old son. “If solely somebody purchased my Christmas Lana,” he posted, referring to the NFTs."

What Happened

Lana Rhoades started to take a strong interest in NFTs, and launched her own collection. The collection flopped and she paid her team with the funds which had been invested before walking away.

Key Event Timeline - Lana Rhoades Alleged Rug Pull

Date	Event	Description
May 2nd, 2021 1:39:00 PM MDT	Lana Rhoades Promoting Titscoin	Lana Rhoades is reported to be promoting titscoin in a video shared on Twitter.
June 4th, 2021 9:19:54 PM MDT	PAWGcoin Promotion	Lana Rhoades participates in a PAWGcoin promotion, as discussed on Reddit.
February 24th, 2022 1:52:32 AM MST	HypeBeast Article Published	According to HypeBeast, Lana Rhoades, an adult actress, has allegedly "rug pulled" her CryptoSis NFT community. After raising $1.5 million USD for her NFT project, which featured a cartoon version of herself, it is reported that she emptied $1.5 million USD worth of Ethereum from the CryptoSis wallet. Rhoades had previously assured her fans that the project would be a safe investment with growing value. However, it is claimed that she decided to walk away from the project and took investors' funds due to negative and rude comments she received on the CryptoSis Discord. The exact timeline of the "rug pull" is detailed in a breakdown by Coffeezilla.
February 24th, 2022 10:30:00 AM MST	BeInCrypto Article Published	BeInCrypto reports on the situation. TBD add and integrate description.
February 25th, 2022 4:22:38 AM MST	NFTEvening Article Published	NFTEvening reports that Lana Rhoades, a former adult film actress and influencer, launched her own NFT project called "CryptoSis," which raised $1.5 million in funding. However, accusations have emerged that Rhoades abruptly quit the project and deleted her social media accounts, taking the funds with her. A Youtuber named Coffeezilla created a video summarizing the events surrounding the NFT initiative. Rhoades had promised her audience that the project would be a valuable investment and that she would work to increase its value. However, shortly after the launch, Rhoades seemingly abandoned the project and transferred most of the funds out. Community members expressed disappointment, with one individual stating they had lost a significant amount of money. Currently, Rhoades' NFT collection has seen a significant drop in value, with a floor price of 0.01 ETH ($26) compared to the original mint price of 0.1 ETH ($261).
February 25th, 2022 7:42:37 PM MST	CoinCu Article Published	CoinCu reports that Lana Rhoades, a popular adult film star, deleted her Twitter account after facing allegations of "rug pulling" her NFT project called CryptoSis. The NFTs' value fell significantly after she pitched them as a "profitable investment for holders." Rhoades had promoted the NFT collection on her Instagram account with 16.8 million followers and her now-deleted Twitter account with 1.5 million followers. She initially claimed that the NFTs would sell out quickly and increase in value, but when they didn't, she reduced the collection size to boost sales. Rhoades responded with a series of furious tweets to criticism, stating that she would never scam anyone and that she needed to pay the production crew. She hinted at keeping the proceeds from the mint but might separate herself from the project.
February 25th, 2022 8:04:56 PM MST	Decrypt Article Published	Decrypt reports that Lana Rhoades, an adult film star, faced backlash and accusations of a "rug pull" regarding her NFT project called CryptoSis. The project's NFTs experienced a decline in value, causing upset among buyers. Rhoades responded to the criticism in a series of angry tweets before deleting her Twitter account. Some individuals accused the CryptoSis NFT project of cashing out funds, leading to doubts about its legitimacy. The current floor price for Rhoades' NFTs on OpenSea is significantly lower than their initial mint price. Rhoades had previously promoted the project on her verified Instagram account, where she has a large following. She made promises of increasing the value of the NFTs and offering exclusive benefits to holders, but the project did not meet expectations. Rhoades expressed uncertainty about turning the investment around and distanced herself from the NFT space, indicating that she wants nothing to do with it. It remains unclear how she will engage with the CryptoSis community going forward.
February 26th, 2022 5:50:42 AM MST	Crypto News Flash Article	Crypto News Flash reports that adult film star Lana Rhoades raised $1.5 million from her NFT project called CryptoSis, but she is accused of performing a "rug pull" and disappearing with the money. She had been promoting the NFT collection for months on her social media accounts, claiming it would be a lucrative investment for holders. However, after the launch, the NFTs' value plummeted, and their current price is 90% below the original value. Rhoades defended her actions on Discord, stating that she needed to pay developers. Many fans and the crypto community are upset and feel deceived by her promises and actions. A popular YouTuber, Coffeezilla, also criticized Rhoades for not fulfilling her commitments to investors.
February 26th, 2022 5:13:17 PM MST	Reddit Thread	In a Reddit thread, InMyOpinion_ accuses Lana of a rug pull on her community. TBD more review of this.
February 28th, 2022 8:53:22 PM MST	Jason Reviews Tech Video	The YouTube channel Jason Reviews Tech publishes a video accusing Lana of conducting a rug pull. He advises viewers not to invest more than they can afford to lose. Lana Rhoades created NFTs that were initially priced at 4.26, but she minted them for 2.61. She received criticism when the value of her investment declined, and she decided to stop doing NFTs. Jason suggests that people unfollow Lana Rhoades on Instagram if they don't like her. He mentions that Lana Rhoades is married and has a child, so she can live off her husband's income or invest in other businesses that don't rely on her personal image. He suggests she should return the money to investors or at least break even. Jason concludes by stating that it's important to be cautious when investing in someone who doesn't have a track record of product development, and he advises viewers to only invest what they are willing to lose.

Total Amount Lost

The total amount lost has been estimated at $1,500,000 USD.

Immediate Reactions

TBD

Ultimate Outcome

"Lana Rhoades’ NFTs currently have a current floor price (minimum “buy now” price) of 0.01 ETH ($26) on OpenSea, which is much lower than their original mint price of 0.1 ETH ($261)."

CoffeeZilla Video Shared

"Coffeezilla, a well-liked YouTuber who busts on-line scammers, tore into Rhoades in a video this week, calling her out for making guarantees to traders and falling by way of."

"Rhoades tweeted a series of furious tweets in reaction to YouTuber Coffeezilla’s video dubbing Rhoades’ CryptoSis project a rug pull, before seemingly deactivating her account. “I have never and will never scam anyone, I don’t need to,” Rhoades said of YouTubers."

"Rhoades responded to a Twitter user who told her to “stop doing NFTs,” saying, “Trust me, I don’t want anything to do with the space anymore.”"

"Rhoades hinted that she’ll keep the proceeds from the project’s mint, citing the necessity to pay the production crew. Going forward, it’s unknown how often she’ll participate in her NFT community’s Discord, which she claims will be restricted to holders only."

"Rhoades deleted her social media handles and the TikTok videos in which she promoted the project."

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

Ongoing Developments

TBD

Individual Prevention Policies

Individuals face risks when investing, especially in any smaller NFT project or coin. Therefore, a high degree of diligence is necessary, and investors should typically be prepared for a total loss of all funds invested.

The Lana Rhoades NFT did not have any TBD

No specific policies for individual prevention have yet been identified in this case.

Avoid the use of smart contracts unless necessary. Minimize the level of exposure by removing or withdrawing assets whenever possible. Aim to choose smart contracts which have obtained third party security audits, preferably having been audited by at least three separate reputable firms. Pay attention to the audit reports, which smart contracts are covered, and whether the smart contract has been upgraded or modified since the report. Ensure that any administrative functions with the ability to remove funds from the smart contract are under the authority of a multi-signature wallet which is controlled by at least three separate and reputable entities.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.