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Week 13 of our "What is Series"🧑🎓
What is a #Rugpull???🤔
A rug pull happens when developers suddenly abandon a project and disappear with the investors' funds. The name is derived from the expression "pull the rug out from under someone".
So how do they work???
What is a #Rugpull???🤔
A rug pull happens when developers suddenly abandon a project and disappear with the investors' funds. The name is derived from the expression "pull the rug out from under someone".
So how do they work???
Rug pulls typically happen when projects take advantage of their hype and sell the majority of their liquidity. With low liquidity, the price of the token plummets and investors are forced to sell theirs at a significant loss.
Types of Rug Pulls:
Hard Rug Pull
A hard rug pull is a deceptive scheme in which the creators of a project intentionally deplete their liquidity reserves in order to make a profit at the cost of the investors who backed the venture.
Hard Rug Pull
A hard rug pull is a deceptive scheme in which the creators of a project intentionally deplete their liquidity reserves in order to make a profit at the cost of the investors who backed the venture.
