How to find a legit project and avoid Scames projects (Rug pull) :
e.g : LUNA ๐
โ ๏ธ RUG PULL : A rug pull in crypto is a type of scam where the developers of a project suddenly take all the invested funds and disappear, leaving investors with worthless tokens. It often happens in decentralized finance (DeFi) or with newly launched coins that seem promising but have hidden risks. To avoid falling for a rug pull, you need to know what to look for.
1 . Team Transparency
Check if the team behind the project is real and verified.
If the developers are anonymous or use fake identities, itโs a major red flag. Legit projects usually have a public team with experience and a good track record in the crypto or tech space.
2 . Locked Liquidity
Make sure the project's liquidity is locked in a smart contract.
Liquidity is the pool of funds that lets people trade the coin. If itโs not locked, developers can remove the money and run. You can check liquidity lock status using tools like Etherscan or TokenSniffer.
3 . Beware of Hype and Promises
Avoid projects that guarantee huge profits or use too much hype.
Scams often promise quick and easy money, but real crypto projects focus on technology and long-term goals, not just marketing and hype.
4 . Real Use Case and Roadmap
Check if the project has a clear purpose and a solid plan.
A good project should have a detailed whitepaper and roadmap. If these are missing, poorly written, or copied from other projects, itโs a bad sign.
5. Token Distribution
โ ๏ธ Look at how the tokens are distributed.
If a few wallets hold most of the supply, those holders can crash the price by selling suddenly. You can view token holder data on blockchain explorers to see if the distribution is fair.
