Understanding Rug Pulls
This involves a team that raises assets from the public by selling a token, but then abruptly shuts down the project or disappears, taking the raised assets with them. This leaves participants, or rather their victims, with worthless tokens.
Rug pulls can be highly orchestrated, with malicious actors using a variety of strategies to attract as many victims as possible. Some scams even use trustworthy figures to gain trust, while others promise extremely high returns or offer exclusive digital products.