How Rug Pulls Happen

[Golden9]

People lose money whenever a coin or token rug pulls and sadly, this happens more often than we would like.

A rug pull is when a coin which has value is manipulated and made worthless to it's holders. It can happen either by the team removing all funds from the liquidity pool, pump and dump or having a token that can only be bought buy not sold.

Have you ever been a victim of a rug pull?

 

[Suba]

Rugpull is a type of fraud in crypto, token developers make off with investors' funds, the method is by launching an ICO and investors are promised large profits from staking, so the locked ICO cannot be sold, after a lot of funds have been collected from investors, the developer immediately disappears without a trace.

 

[riberet19]

Rugpull is a type of fraud in crypto, token developers make off with investors' funds, the method is by launching an ICO and investors are promised large profits from staking, so the locked ICO cannot be sold, after a lot of funds have been collected from investors, the developer immediately disappears without a trace.

Exactly and unfortunately this happens more than we would like, it is very difficult to find today a project that from its beginning is worthwhile since there are high chances that it is only a scam project to take your money.

 

[Suba]

I think the best way to avoid Rugpull is not to buy ICO directly from the developer. it's better for us to buy an IEO that is carried out by well-known crypto exchanges such as Binance, Kucoin, Bittrex etc.

 

[fcbetting]

Rug pull is similar to ponzi scheme. Convice people to invest money, fake few investors so others thinks they are not alone and later just gone with money. With crypto is easier hide tracks.

 

[Suba]

Even though both refer to investment, the patterns and methods of rugpull and ponzi schemes are very different, our rugpull buys ICO tokens, while our ponzi scheme only invests in the promise of big profits.

 

[Smalto]

I've not really bee

People lose money whenever a coin or token rug pulls and sadly, this happens more often than we would like.

A rug pull is when a coin which has value is manipulated and made worthless to it's holders. It can happen either by the team removing all funds from the liquidity pool, pump and dump or having a token that can only be bought buy not sold.

Have you ever been a victim of a rug pull?

I haven't really experience the rug pull of a thing, maybe because I'm really yet to delve in deeper into trading, but pretty soon I will venture into futures and spot trading, then I would get to understand it better.

 

[Suba]

Rug pull is a mode of fraud in the crypto world, small and novice investors are often victims, so we need to discuss the signs of a rug pull, which is generally done on DEX and DeFi. One of the signs of the Rugpull token is that it has low liquidity, or we can also monitor the token's trading volume at least within 24 hours which is very low or less than 20% of the marketcap.

 

[nomad]

One of the major problems associated with crypto is rug pull. Since crypto is unregulated, anyone can create fake coin and do rug pull. I have never been a victim of any rug pulls.

 

[ekta]

Rug pulls occur when developers of a cryptocurrency project suddenly withdraw funds, leaving investors with worthless tokens. They often create hype around the project before disappearing causing significant financial losses for investors.