The founder of Rug Radio, Farokh, is receiving backlash from CryptoTwitter after tweeting that he’s sweeping the Rug Radio Membership Pass floor.
“Just swept the Rug Radio Membership Pass floor, a thread on why I did so,” tweeted @farokh. While some of his fans congratulated him for doing so, others were concerned that he’s actually violating OpenSea’s Terms and Conditions.
“pretty sure its against OS terms to sweep your own floor. Might wanna check that,” tweeted @TheNFTHunter. @Zeneca_33 clarified the situation in another tweet, “Technically I think it’s only against the TOS if you use revenue from the project to sweep the floor; there’s nothing against a founder using their own funds to sweep. impossible to police either way.”
What’s the hype around Rug Radio, anyway?
Farokh’s Rug Radio claims to be the first, fully-decentralised Web3 media platform. This means that the community owns the platform that the community then participates in. Basically, it’s a DAO that enables members to decide which memes, conversations and narratives they consume.
Rug Radio proved to be so popular with the NFT community that membership passes sold out just four days ago. The Genesis NFT mint will happen on OpenSea on January 11th for 0.111 ETH, where 1 pass equals 1 mint.
Why Farokh may have violated OpenSea’s Terms of Service
NFT project owners have to confirm that they agree to the following statement: “No owner nor operator of the submitted collection has ever nor will ever use revenue from the project to conduct buybacks or “sweep the floor” of the submitted collection.” However, it’s very difficult to say whether a founder has used their own funds to sweep or is using revenue from the project at hand to sweep the floor.
What happens when a user violates OpenSea’s ToS?
If a user violates the terms of service, they might lose their verified status. OpenSea reserves the right to remove verified status at any time for any reason and without notice. In some cases, OpenSea may also remove a user’s verified status and ban them from OpenSea.
While it will be difficult for critics to verify whether Rug Radio’s Farokh has violated OpenSea’s Terms of Service, the entrepreneur and NFT influencer shows no sign of stopping. In addition to the Rug Radio project, Farokh’s “Baby Farokhs” NFTs have astounded CryptoTwitter with their massive success.