The development of decentralized finance has generated considerable returns for people that invested in it, but also the biggest SCAMs in crypto history.
Today we're talking about Rug Pulls, perhaps the most common method to illegally siphon off money from crypto, especially in the DeFi ecosystem.
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The main topics of the video are:
▶ What is a rug pull? ▶ What are the different types of Rug Pulls? ▶ The biggest rug pulls ▶ Signs of a rug pull ▶ How to avoid a rug pull?
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🟡 What is a rug pull? The development of decentralized finance has generated considerable returns for people that invested in it, but also the biggest SCAMs in crypto history.
Today we're talking about Rug Pulls, perhaps the most common method to illegally siphon off money from crypto, especially in the DeFi ecosystem.
Nicely put, a Rug Pul is actually theft. It occurs when the initiators of a project withdraw funds from contributors and run off with them.
🟡 What are the different types of Rug Pulls? The first one is called Stealing Liquidity and it’s probably the best known; it involves listing a newly created token on a decentralized exchange.
To withdraw liquidity, a liquidity pool is required. The developers of the token create a pair with an established currency, such as ETH.
🟡 Signs of a rug pull Next, let me tell you about the most common red flags.
The first thing you should question is a project with anonymous developers. Avoid those with founders hiding behind pseudonyms! Another red flag - well, none other than…projects that appear overnight. In order to capture a large audience, rug pulls abuse current market trends, memes or even the subculture created around a certain topic.
🟡 How to avoid a rug pull? To avoid falling in a trap yourself, stay connected as much as possible to the community around the project. It's vital to read their whitepaper. You should understand the problem they are trying to solve, who are the members of the team, what liquidity there is, how many holdouts there are, whether it is listed - on a centralized or decentralized exchange.
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- CHAPTERS -
0:00 What is a rug pull ? 0:42 What are the different types of Rug Pulls? 2:37 The biggest rug pulls 5:11 Signs of a rug pull 6:15 How to avoid a rug pull? 6:39 Conclusions 6:50 Outro
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