What is Rug Pull?

A Rug Pull is a malicious maneuver in the Crypto Currency Industry where crypto developers abandon a project and run with nvestors funds, this also known as a Scam Coin.

Rug Pull mostly occurs in Defi (Decentralized Finance) especially on Dex (Decentralized Exchanges). Some malicious individuals create a token and list it on dex then pair it with leading cryptocurrencies like Ethereum, Once a significant amount is invested by investors then creators of the coin swap it through a liquidity pool to zero.

Rug Pull often create temporary hype around it using Telegram and other social media platforms like Facebook, Twitter etc.

Other example is skyrocketing prices within hours from 0 to 50 times. This trick creates FOMO (fear of missing out) that leads to more people investing in the token.

Be careful to purchase such coins.

#RugPulls #scamcoins #fomo