Comprehensive Guide to Avoiding Crypto Rug Pulls
Comprehensive Guide to Avoiding Crypto Rug Pulls
馃毃 When Devs Go Dark
By Cross Pool
May 1, 2025, 3:06 PM
Photo by Cross Pool
A rug pull occurs when crypto project creators abandon their project and flee with investor funds. Common types include:
- Hard rug pulls: Sudden liquidity drainage
- Soft rug pulls: Gradual project abandonment
- Pump-and-dump schemes
- Fake utility token scams
Key prevention strategies:
- Verify team identities and track records
- Check liquidity locks and contract audits
- Monitor developer wallet activity
- Use hardware wallets and 2FA
- Stick to reputable exchanges
- Avoid FOMO-driven investments
Remember: Always conduct thorough research and invest only what you can afford to lose.
Crypto offers big gains but also big risks. One major threat is the rug pull, where project creators vanish with investor funds. This post breaks down what rug pulls are, how to spot them and how to protect yourself from falling victim. 馃У猡碉笍
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