#CryptoClarityAct

→ "Today, we are talking about rug pulls."

A *rug pull* is a common scam in crypto where project developers raise funds from investors and then disappear with the money.

Types of rug pulls:

1. Liquidity removal: Developers add a token to a decentralized exchange (DEX) with liquidity, then withdraw all the funds after users buy in.

2. Malicious code: The smart contract contains functions that allow the developers to block token sales or drain wallets.

3. Fake projects: DeFi or NFT projects promising high returns with no real utility or development behind them.

Signs of a rug pull:

- No identifiable or verifiable team.

- No code audit.

- Unrealistic promises (e.g., 1000% APY).

- Unlocked liquidity or sudden liquidity withdrawal.

- Vague communication or sudden disappearance from social media.

Always do your own research (DYOR) before investing in any crypto project.