♦️A rug pull in crypto occurs when developers or insiders suddenly withdraw liquidity from a project, causing the token’s value to crash. This leaves investors with heavy losses.
Think of it like someone pulling the rug out from under you— the project collapses, and investors are left with no way to recover. Rug pulls are a form of exit scam that can wreck investor trust and tarnish a project's reputation, similar to what we've seen in other cases.