David Schwartz has shed new light on what makes up crypto rug pulls in the market.
David Schwartz, Ripple Labs’ Chief Technology Officer, recently sparked a conversation about the true meaning of rug pulls. In an X post, Schwartz shared his thoughts on the controversial topic, setting up a discussion among his followers.
Crypto rug pulls remains one of the significant issues that has plagued the blockchain and crypto space. Many high-profile cases have shown how serious the issue is. The Ripple CTO post highlights how important it is for Web3 founders to understand the context and control occurence.
Ripple CTO and the New Take on Crypto Rug Pulls
In crypto, a “rug pull” happens when project founders or developers abandon their venture, often after securing significant funds from investors. This act leaves backers with worthless tokens or an incomplete project, sometimes shattering trust in the crypto ecosystem.
These scams have surfaced in various high-profile cases, highlighting the vulnerabilities of decentralized finance (DeFi) and the need for accountability. However, Schwartz pointed out that not all project failures should be called rug pulls.
In his post, he addressed the misuse and overextension of the term. He argued that a rug pull occurs when key players in a project sell large amounts of tokens faster than investors reasonably expected.
Such notable players may include founders, developers, or major stakeholders. This move often feels like a betrayal to those who believe in the project’s long-term goals. A rug pull can also occur when the team drastically reduces their involvement or abandons the project before delivering on their promises.
This premature exit leaves investors stranded, with no roadmap or development, breaking their trust in the project. A situation like this was reported by Coinspeaker last February when the RiskOnBlast project allegedly scammed investors for $1.3 million.
Germany Sells Bitcoin Early, Misses Out on Billions: A Masterclass in Government Timing
In a world where hindsight is 20/20, the German government has proven that selling early is not just for panicked investors but also for nations with seized assets. Back at July 2024, Germany decided to liquidate 50,000 bitcoins, obtained from Movie2k.to, at a “bargain” price of $53,000 each. They must have been feeling pretty smug walking away with $2.65 billion. Fast forward to today, with Bitcoin ATH at $109,382, and we can only imagine the collective facepalm echoing through Berlin.
The Missed Opportunity Imagine the government board room conversation: Finance Minister: "Bitcoin is at $53,000. Should we hold and see what happens?" Advisor: "No, sell it all! This is definitely the top." Fast forward six months: Finance Minister: "Where’s Bitcoin at now?" Intern: "...$109,382." Finance Minister: "WTF??" Why Stop at Bitcoin? If this is the strategy, why not expand it? Seize Van Goghs and sell them at IKEA prices. Confiscate luxury yachts and raffle them off as fishing boats. After all, why let assets appreciate when you can cash out immediately and avoid the stress of making billions later? Lesson for the Future In their defense, the German government wasn’t trying to time the market; they were just following the rules. But this case will go down as a text book example of how bureaucratic caution can accidentally light billions on fire. Maybe next time, they’ll consult a pro-crypto millennial—or better yet, HODL like the rest of us dreamers. Until then, let us toast to Germany’s impeccable timing. At least someone out there is probably enjoying the cheap bitcoins they picked up in 2024. Cheers to them! Don't be like Germany,hold on to your "hats"(crypto) #CryptoSurge2025 #BTCBreaksATH
Metahorse Unity ($MUNITY) is gaining traction on BASE, showing potential for impressive growth as anticipation builds for the Q1 game launch.
Currently steady, the token is poised for an exciting phase with the community buzzing about what’s next.
The highly anticipated game launch is set for Q1, promising to bring strategic gameplay, NFT integration, and innovative mechanics to Web3 gaming.
$MUNITY’s momentum on BASE is growing, and the upcoming release is expected to reflect positively on its chart.
With active development and strong user engagement, the foundation is set for sustainable growth.
The Q1 game launch is a significant step, not just for $MUNITY but for Web3 gaming as a whole. With its narrative depth, exceptional mechanics, and mobile-friendly model, Metahorse Unity is paving the way for a new era of blockchain games.
Keep an eye on this project—it could be your gateway to the next big thing in crypto and gaming!
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• With up to 50,000 BNB up for staking, this campaign drives the growth of the DeFi ecosystem, integrating direct incentives for innovative protocols .
CAMPAIGN OVERVIEW • Compete: Increase your staked BNB and TVL to stand out. • Rank: Improve across key metrics like absolute growth, percentage increases, and protocol security. • Earn Rewards: Top 5 receive BNB delegation in support, with a maximum of 20,000 BNB per protocol for 1-3 months.
• This dynamic rewards exceptional performance and security in protocol management.
BENEFITS FOR PROGRAM PARTICIPANTS
• BNB Chain will provide BNB delegation support to the Top 5 performing protocols, amounting to up to 5% of the incremental TVL (staked BNB only) achieved during the campaign. This staking support will be up to 20,000 BNB per protocol, and 50,000 BNB in total.
• To qualify for Delegation Support, the top 5 protocols must meet the following benchmarks : 🛡️ Completion of at least 2 security audits by the end of competition period 🏦 Achieving a minimum of $10 million in Total Value Locked (TVL) 🛡️ Security & risk management review by BNB Chain Foundation
• By meeting requirements such as security audits and a minimum of $10 million in TVL, the protocols project a strong image of trustworthiness, which can attract both new users and large institutions interested in collaborating.
COMPETITION RULES
• Qualified participants will be ranked based on 4 indicators and their weights, and the top 5 protocols will receive delegation support of up to 5% of their staked BNB increments.
• FOR EXAMPLE :
🔸 If Project A secures 1st place with an increase of 200,000 BNB in staked BNB, it should qualify to receive 5% of the increase, which is 10,000 BNB as Delegation support. 🔸 In another example, If Project B achieves 1st place with an increase of 450,000 BNB in staked BNB, it should qualify for 5% of the increase, amounting to 22,500 BNB. However, due to the cap, it will receive a maximum of 20,000 BNB in Delegation support.
📝 Please note that the final allocation of BNB Delegation support among the Top 5 protocols will be evaluated based on the overall performance and security/risk management measures of each protocol.
🔸 @BNB Chain 🔸 Registration is open: from January 15 to the end of the competition on February 21, 2025.
🔸 Thanks to the entire community for their support 🤝🐯🧡 ..
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