What is rug pull in cryptocurrencies?
Rug pull is a type of crypto scam that occurs when a team pumps their project's token before disappearing with the funds, leaving their investors with a worthless asset.
Rug pull occurs when fraudulent developers create a new crypto token, pump up the price, and then extract as much value from them as possible before abandoning it when the price drops to zero. Rug pulls are a type of exit scam and a decentralized finance (DeFi) exploit.
Before learning how to spot crypto rugging and why crypto rug pulling occurs, it helps to understand the three different types of rug pulling #RUG