What is a rug pull?

A rug pull is a type of crypto scam that occurs when a team pumps their projects token before disappearing with the funds.

What is a rug pull?

A recent example is the SQUID token, which saw the token reach $2,850 in value at its peak. Once the developers’ rug pulled they prevented traders from selling. The coin crashed by over 99.99%, rendering it basically worthless while the developers ran away with millions of dollars.

How to avoid being rug pulled?

However, sometimes rug pulls happen because of mistakes in the smart contracts. These mistakes can be exploited by hackers to perform a rug pull. This is why it is always important to ensure projects that you are invested in have undergone at least 2 security audits.

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