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A rug pull is a type of crypto scam that occurs when a team pumps their project’s token before disappearing with the funds, leaving their investors with a valueless asset .6 Şub 2022

For new cryptocurrencies, if the top 10 wallets hold more than 20% of the token, or worse, a large percentage of the token is held in a single wallet , then this is a dangerous sign of a potential rug pull. If one or more of these top wallets sell all their tokens in an exit scam, the price of the crypto will crash.

If a project is going to fulfill their promises, it is unlikely that they will have spelling errors and slow site speeds. Social media can also be a good indicator in identifying a rug pull . If the social media has a low following on Twitter but an enormous following on Discord or Telegram, this is a red flag.

Rug pulls are usually executed by cruel scammers who construct hype around their coins and then abandon the project, sprinting away with the money . These cryptocurrencies are generally done on trustworthy utility blockchains like Ethereum or Binance Chain.