A rug pull is where fraudsters hype up a non-fungible token (NFT) project using social media, only to make away with the money once users put their money into the project . Ethan Nguyen and Andre Llacuna are accused of stealing $1.1 million from the Frosties scam.
Read moreHow do you stop a rug from pulling?
To ensure you don’t fall victim to a rug pull, check the liquidity in a pool . However, this is only the first step. You must also check if there is a lock on the token’s pool. Most reputable projects lock pooled liquidity for a certain period.
Read moreWhat is a rug pull?
A rug pull is where fraudsters hype up a non-fungible token (NFT) project using social media, only to make away with the money once users put their money into the project .
Read moreHow long does a rug pull take?
Another major characteristic of a possible rug pull is a coin skyrocketing in price within hours. For example, a rug pull coin can move from 0 to 50X within 24 hours . This trick is meant to drive FOMO that leads more people to invest in the token.
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