Exit Scams: The Anatomy Of A Crypto Rug
A chill runs down your spine as you watch your digital wallet balance plummet. The crypto project you invested in, the one you poured hours researching and believed in, has vanished. The developers are gone, the website is down, and the liquidity pool is drained. You've just experienced the dreaded "rug pull," a common and devastating scam in the decentralized finance (DeFi) world. This article will delve deep into the mechanics of rug pulls, offering practical guidance on how to spot them and protect your crypto investments.
What is a Rug Pull?
Defining the Rug Pull
A rug pull is a malicious maneuver in the cryptocurrency space where developers abandon a project, taking investor funds with them. It's essentially a bait-and-switch scam, where initial enthusiasm and promised returns are rep...