About Rugpull in CRYPTO Projects

GM Tronics in the forum
Happy new week,
Such happy to see most of the S4 project winners reaching their milestone with huge updates and betterment.

Today I will be sharing
What is a rug pull in cryptocurrency?

A rug pull is a type of crypto scam that occurs when a team pumps their project’s token before disappearing with the funds, leaving their investors with a valueless asset.
Rug pulls are a type of exit scam and a decentralized finance (DeFi) exploit.

Q. I believe we all experience this once or twice… Let’s share our experiences!.

What are the various types of rug pulls?

There are three main types of rug pulls in crypto: liquidity stealing, limiting sell orders and dumping.

Liquidity stealing:- occurs when token creators withdraw all the coins from the liquidity pool. Doing so removes all the value injected into the currency by investors, driving its price down to zero.

Limiting sell orders:- In this situation, the developer codes the tokens so that they’re the only party that is able to sell them.

Dumping:- occurs when developers quickly sell off their own large supply of tokens. Doing so drives down the price of the coin and leaves remaining investors holding worthless tokens.

This usually occurs after big promotion on social media that result in spike and sell-off are known as a Pump-and-Dump Scheme.

Forms of Rugpull:-
Hard pulls vs soft pulls
Rug pulls come in two forms: hard and soft. Malicious code and liquidity stealing are hard pulls,
Whereas soft pulls refer to dumping an asset.

Are crypto rug pulls illegal?
Crypto rug pulls are not always illegal, but they are always unethical.


Hard rug pulls are illegal. Soft rug pulls are unethical, but not always illegal.

How to avoid a rug pull in crypto?

There are several clear signs that investors can watch out for to protect themselves from rug pulls

Spotting a crypto rug pull scam: It takes some personal research

So I will keep this undisclosed, I will need us to share our financial Crypto advise oh how we can spot and protect our bags from crypto rugpull?.

Thanks everyone that will be engaging, all the best.
Together we sTRONger.


Thanks For your tutor and mentorship

Thanks buddy , trust the information was helpful.
Do you have any questions or contributing to it?