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Rug Pull

What does Rug Pull mean in crypto terms?

A Rug Pull is a type of scam in the cryptocurrency and decentralized finance (DeFi) sector where developers abandon a project and run away with investors’ funds. Typically, developers build trust and attract investors through marketing and seemingly legitimate project development. However, after accumulating a substantial amount of funds, the developers might withdraw liquidity, manipulate contract functions, or exploit vulnerabilities to siphon assets, leaving investors with worthless tokens. Rug Pulls can result in significant financial losses for investors, highlighting the importance of due diligence and risk assessment when participating in DeFi projects.

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