⚠️ How rug pull scams work and how to avoid them

Rug Pull: Theft of funds by token developers, common on DEXs (where they control the trades) and especially in meme tokens (where they don't bother with white papers and the like). At some point, the team simply takes all the money and disappears💥

3 types of rug pulls:

🔖 Withdrawal of assets from the liquidity pool on DEX.

🔖 Modification of the smart contract to prevent token sales.

🔖 Team/insiders dumping all their token holdings in a short period.

What to Do:

➕ In theory, any team with a token on a DEX can turn bad and take the money at any time. The best protection is not to use DEXs.

➕ If avoiding DEXs is not an option, gather as much information as possible about the project/team/token/contract and double-check everything to minimize risks 🐻