Rug Pull in the Crypto World

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Rug Pull is a type of fraud in the crypto world where developers run away with all user funds and remove the liquidity of the token. Rug pull often occurs in DeFi projects that provide liquidity on DEX and are only sold through IDOs, generally the type of token that will be used as a rug pull is not listed on CEX. Some examples of Rug pull fraud cases such as SQUID (2021) and Thodex from Turkey (2021).

Signs of Rug Pull
The token price spike is very fast without adequate liquidity support, the spread of FOMO news on various social media. To avoid the rug pull trap, crypto lovers should research crypto projects before buying new tokens, evaluate the tokenomics, liquidity, token distribution and development team.