#Scamalert
What Is a Rug Pull? How It Scams Investors
A rug pull is a type of crypto scam where developers hype a project (usually a new token or NFT), get people to invest, and then suddenly drain the funds—leaving investors with worthless assets.
How it works:
1. Scammers create a project and build hype through social media.
2. They list the token on a decentralized exchange (DEX).
3. Investors buy in, pumping the price.
4. The developers pull all the liquidity or sell their large holdings.
5. The token value crashes to zero. They're gone. You're scammed.
Red flags:
Anonymous developers
No audits
Overpromised returns
Locked liquidity missing
Copy-pasted whitepapers
Stay safe: Always do your own research (DYOR), verify the team, and look for audits before investing.
