A play for free casino built on Sudoswap
If you’ve been following my emails, you’ll know about Sudoswap, the NFT marketplace that recently launched on Ethereum and quickly drew massive attention. This week I want to tell you about an experimental app that lets you win NFTs on Sudoswap, potentially making free ETH with surprisingly low risk.
Sudorug is the scarily named experiment in question. It buys NFTs from Sudoswap, then distributes them to random holders of the SUDORUG token. It’s relaunching imminently as an improved V2 as the app previously ran out of ETH due to demand.
With a more efficient smart contract on the way, and the ability to sustain itself, the casino-like app is worth understanding. With it, you can win Based Ghoul NFTs, and being early will increase your chances.
In case you’re not familiar, Based Ghouls are a collection of 6,666 pixelated skull profile pictures with quite a bit of street cred in cryptoland. Sudorug’s creator is part of the Based Ghouls team, hence the connection. Currently, a floor-priced Based Ghoul will cost around 0.15 ETH, making it worth winning.
Sudorug funds its Based Ghoul purchases by selling some of its token supply for ETH whenever someone uses the app. Once it has sufficient ETH and a few other conditions are met, Sudorug makes the purchase from Sudoswap.
This is where the element of casino-style winnings come into play. Sudorug picks three random wallets holding at least 100,000 SUDORUG and sends the NFT to the wallet with the highest number of tokens. The random function encourages users to increase their holdings to have a higher chance of winning, driving demand for the token. But winning NFTs is not the end of the trade.
Because Based Ghouls are desirable, there are numerous Sudoswap pools that will buy them automatically for ETH. This means Sudorug winnings can immediately be converted into ETH as profit. At the time of writing, the 100,000 SUDORUG needed to qualify costs around $125, while Based Ghouls sell for approximately $250, making the cost of entry and downside low.
In reality, you’d need more than 100,000 tokens to win, so consider the math involved. We’ll use V1 token holdings as a model to work as an example. There were just under 80 wallets holding enough SUDORUG to qualify, giving about a one in twenty-seven chance of being selected.
While selection is random, theoretically, every wallet could expect to be chosen at least once a month. In reality, the selection process was triggered much more often, reducing the time it would probably take to be selected down to hours and days rather than nearly a month.
The next step to consider is that the median number of tokens held by these accounts (the value in the middle) was about 360,000 – about $450. By holding this amount, or more, you would ensure that, if selected, you’d probably have had a better chance of winning the NFT than half the competitors. This moves the needle comfortably and affordably in your favor.
Those with deeper pockets could allocate 1 ETH to buy just over 1.24M SUDORUG, then distribute it across multiple wallets to further enhance chances. DeFi natives may want to use an NFT already owned as collateral to borrow the ETH. Aside from the interest charged on the borrowing, this is how to play Sudorug’s game for near-free.
While we must remember that the initial selection process is random, on paper, the chances of winning feel good. You can understand why so many people got involved with V1 in just a few days of what was effectively a stealth-launched app.
Looking ahead to the release of V2, player numbers are likely to initially remain consistent as holders of V1 tokens will receive V2 replacements and remain in the game. This gives you a chance to get in and use the ideas above to your advantage.
If played well, there is little downside to Sudorug. At any time, token holdings can be sold, making the game more or less free to play (depending on how the token’s price changes, of course). This is where it is worth bearing in mind the app’s name, it uses ‘rug’ for a reason, and is a caveat to keep in mind.
Sudorug sells its token to buy ETH every time someone uses the app. Therefore SUDORUG will slowly devalue if there isn’t enough buying pressure, and this is the main risk taken, if staying too long.
That said, remember I’m telling you about this app early. Get in first and let everyone that follows you be the liquidity you need to exit at low to no cost, hopefully with some extra ETH in your wallet.
Until next time
Disclosure: At the time of writing, the author held several NFTs, ETH, and other cryptocurrencies. Read our trading policy to see how SIMETRI protects its members against insider trading.