Beyond Exit Scams: The New Era Of Rug Pulls
A chilling term echoing through the cryptocurrency landscape, "rug pull" sends shivers down the spines of even seasoned investors. It represents the ultimate betrayal in the decentralized finance (DeFi) space: a malicious maneuver where project developers abruptly abandon a project, draining its liquidity and leaving investors with worthless tokens. Understanding what rug pulls are, how they happen, and, most importantly, how to protect yourself is crucial for navigating the often-unregulated waters of crypto investing.
What is a Rug Pull?
Defining a Rug Pull
A rug pull, quite literally, is when the project's "rug" is pulled out from under the investors, causing them to fall flat. In the context of cryptocurrency, it's a type of exit scam where developers promote a new token or project, at...