This article discusses rug pulls in the cryptocurrency world. A rug pull occurs when the developers of a cryptocurrency token abandon the project and run away with investor funds, causing the token price to plummet. Rug pulls often happen on decentralized exchanges and NFT projects due to a lack of regulation and the ability for anyone to create and launch a token. Scammers use fake identities and market the token on social media platforms, luring investors with promises of high returns. There are two types of rug pulls: hard pulls, which involve malicious code in the project's smart contract, and soft pulls, where developers sell their token holdings in batches. The article also highlights notable rug pulls in recent years. Rug pulls have a negative impact on the crypto market as a whole, leading to increased regulation and decreased liquidity. The article provides tips for avoiding rug pulls, such as researching the token supply, avoiding unrealistic promises, checking for security audits, and evaluating the project's team. It also advises using blockchain explorers, looking for projects with explicit use cases, conducting extensive research, keeping up with scam patterns, resisting FOMO driven by hype, and understanding the need for regulatory supervision. Rug pulls are illegal but difficult to track due to the anonymity of the developers. It is recommended to invest in reputable crypto projects with known founders.



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