Rug Pull Crypto Fraud is Rampant, What is it?
In crypto investment, there are several well-known fraud schemes that are detrimental to investors, one of which is the Rug Pull fraud scheme.
Rug Pull is a form of fraud in crypto where developers abandon a project they have created, after collecting funds from investors.
They sell crypto assets from the projects they develop simultaneously and in large quantities so that the value of the assets owned by investors becomes worthless.
The word Rug Pull is taken from an English parable, which has the literal meaning of pulling the carpet so that the person standing on it falls.
Usually a Rug Pull occurs in a short and fast period of time so that most small investors who follow the trend will be greatly harmed without understanding what is happening.
To avoid Rug Pull, it is a good idea for investors to research first who the people or developers behind a crypto project are.
Apart from that, investors are also expected to avoid FOMO (Fear of Missing Out) because investing cannot just be done by following along, but rather needs to understand everything in it.