💣 "What is a Rug Pull?" It's like having the rug pulled out from under you before you even have a chance to sit down!
Imagine walking into a fancy restaurant, just settling in when... they suddenly pull the rug out from under you and run away with your deposit. That’s exactly what a Rug Pull is in the crypto world!
💡 Simply put:
A Rug Pull is a scam in DeFi projects, NFTs, or new tokens.
Initially, they create a "delicious" project, promising huge profits, high APY farming, or rare NFTs.
When a lot of people invest money, they will:
Withdraw all the liquidity from the pool.
Shut down the website, delete social media.
Sell all their tokens, causing the price to crash.
→ Investors are left with worthless tokens that no one buys, losing everything!
🔍 Signs to identify a project that could easily be a Rug Pull:
Anonymous team (no clear information).
No audit of the smart contract.
Loose token lock allowing devs to sell everything.
Promises that sound too good to be true: super high profits, “no risk commitment”.
📉 Classic example:
Squid Game Token (SQUID) in 2021: increased several hundred times then... collapsed in a few minutes, with the dev absconding with nearly 3 million dollars.
Many P2E/NFT games have also used this tactic.
✅ In summary:
A Rug Pull is the "rug pull" trick where the project owner deceives you into investing and then... runs away with your money.
To avoid it: always check carefully, don’t FOMO, and only invest when you understand clearly.