Rug Pull is a common phenomenon in the crypto market. It is a situation when the crypto token creator takes all the money and runs away. The latest example of Rug Pull is LUNA. You can avoid being rug pulled by investing only in the projects that have been established as reliable project, investing only in the coin that has well-developed ecosystem, and investing only after doing a lot of research.
How to Avoid Rug Pull
- Thread starter nomad
- Start date
Luna was well developed before it falls from grace. I don't thibk there is any remedy to that except to be optimistic and have the faith that it will not turn sore. All measures can not stop us from experiencing rug pull.
To avoid rugpull we have to research the developer team, network information including liquidity, sales volume. In general, Rugpull is only listed on a few DEXs, if the liquidity and trading volume is small then the potential for rugpull is even greater, the spread of crypto is not thorough. Crypto rug pull is only owned by a few scammers in large numbers.
One of the best ways to avoid rugpull is to invest on famous and well-known cryptocurrencies.
The points you raised is very pivotal and important which is why it is needed to trust only the popular cryptocurrencies.
I think the way to avoid being a victim of this is to invest in cryptocurrencies which have a strong development, not look for possible gems that have just come to market or wait for these coins to grow something and have a clear purpose.
One tip is to look for projects with locked liquidity which means the devs can't just pull the rug and run with your money. Also, check if the project has a renounced contract that means no one can mess with the code and scam you. And if you're feeling extra cautious, consider investing in audited projects.
Bad actors in crypto are getting more knowledge. This has made them create tokens professionally despite knowing they'll rug the token. However there are stuffs to look out for which includes locking of liquidity and identity of team.
The best ways to prevent this type of thing is to ensure you invest on well-known cryptocurrencies.
