Rug pull is a crypto scam where developers abandon a project, taking investors' funds.
Rug pull is a deceptive practice in the cryptocurrency space. Developers create a seemingly legitimate project, encouraging investments. Once they collect significant funds, they abruptly withdraw all the capital. This leaves investors with worthless tokens and no recourse. Rug pulls often exploit the hype around new or trending projects, especially in decentralized finance (DeFi) and non-fungible tokens (NFTs). To avoid rug pulls, investors should conduct thorough research. This includes examining project credibility, developer transparency, and community feedback. Due diligence is crucial in distinguishing between genuine opportunities and potential scams.
