Fraud & Scams

Rug Pull

Definition

What is Rug Pull?

A digital-asset fraud in which insiders remove liquidity or abandon a project after attracting investor funds.

Example in practice

Developers drain the token's liquidity pool and disappear.

Keep learning

A fraud that pays earlier participants using money from newer participants rather than genuine investment profits.

A scheme that rewards recruitment more than genuine product sales or investment activity.

Manipulating an asset upward through misleading promotion before selling into the inflated demand.

A person or firm that executes securities transactions for clients.

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