A rug pull is a deceptive scheme in which developers of a cryptocurrency project suddenly withdraw all funds, leaving investors with worthless tokens. This scam is particularly prevalent in decentralized finance and NFT projects with little regulatory oversight.
Investors are often lured by promises of high returns, only to suffer significant losses when the project collapses.
Due diligence and skepticism are essential to avoid falling victim to rug pulls in the volatile crypto market.
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