Yesterday was a nightmare for Balloonsville NFT holders as the collection turned out to be a rug.
Shamelessly, the official account accepted how it was a rug via a tweet. Obviously, after which they deleted their account.
In a series of tweets, Balloonsville’s account wrote about how Magic Eden which is a solana’s marketplace, didn’t even bother to verify the team’s ID. Not only this, the team also wasn’t provided with any proof of concept according to Solana’s protocols.
These announcements infuriated the NFT community, putting Solana in a difficult position.
What is the Balloonsville NFT collection?
An NFT collection of 5000 items, the NFT series was a successful drop. Allegedly, the project made more than 17890 SOL ( $2M) before the rug. Meanwhile, the average sale price of NFT was around 1.88 SOL.
How will the collectors recover?
Magic Eden decided its course of action regarding the recent Rugpull. They made the following announcements via Twitter :
1) Derugging of Ballons/NFTs – Essentially, the decision came after keeping the followers’ count in mind. Therefore, Magic Eden not only decided to derug the project but also offer 5,000 SOL from their treasury to fund the roadmap. This is to note that the creators’ royalties will now flow into a new address and not to the scammer.
2) Refund minters who sold below the floor price – Around 85% of initial balloons were sold above the mint price. Given that, Magic Eden will only refund the rest of the 25% of sellers, who sold before the floor. This will be done through an airdrop where the difference amount will be adjusted in the next 24 hours.
3) Offer an option for a refund to holders: Lastly, if the holders want to leave, the marketplace is giving an option to burn and refund for the mint price i.e. 1 SOL. To find out more, you can join Balloonsville 2.0 discord.
Apart from this, there will be no refund for the people who bought into the project on secondaries and sold at a loss. To explain, Magic Eden wrote, “It is a slippery slope to refund trading losses, doing this will lead to market manipulation”.
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