◈ crypto
Rug Pull
Creators drain liquidity and abandon ship
What is Rug Pull?
When project creators withdraw all liquidity and disappear, leaving investors with worthless tokens. The most common scam in crypto. If you're consulting for a project, transparency and locked liquidity are non-negotiable trust signals.
How it works
Key takeaways
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Team drains liquidity and disappears
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Token price crashes to near zero
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Common with unaudited, anonymous teams
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Real-world example
A new DEX launches with a slick website. After $5M in liquidity is deposited, the devs withdraw everything in one transaction. Token goes to zero.
