Rug pulls or carpet pulls are a very common scam model in the world of crypto assets, especially in crypto projects that are based on a decentralized finance system.

It occurs when the developers behind a project launch a token and attract investors to increase its value, only to suddenly withdraw the funds and take the money. When scammers drain the liquidity pools, the price of the crypto asset falls to zero and investors lose the ability to exchange the tokens for more stable ones or fiat money.