When you invest in a new rug pull, a type of crypto scam where developers abandon a project and steal investor funds. Also known as liquidity drain, it’s one of the most common ways people lose money in crypto. It doesn’t take a fancy hack or a complex exploit—just a quick code change, a hidden backdoor, or a sudden withdrawal of liquidity. And it happens all the time, especially on new decentralized exchanges, platforms like SushiSwap or Decaswap where anyone can launch a token without oversight. You’re not just betting on price—you’re betting on trust. And most of the time, that trust is fake.
Look at what’s happened with tokens like Cougar Exchange (CGX), a token that claimed to be an exchange but had no real platform or team behind it. Or the SPAT Meta Spatial airdrop, a promotion that looked legit but was designed to collect wallets and later drain them. These aren’t outliers—they’re textbook rug pulls. The pattern is always the same: hype, low liquidity, anonymous team, and a token that’s easy to dump. You’ll see big social media ads, fake YouTube reviews, and promises of 100x returns. But if the team doesn’t have a public GitHub, no audited contract, and no locked liquidity, you’re already in danger.
Here’s what you can actually do: check the liquidity pool. If more than 50% of the tokens are held by one wallet, run. Use tools like TokenSniffer or RugDoc to scan contracts for hidden functions. Never invest more than you can afford to lose—especially in tokens with no real use case. And if a project promises rewards without explaining how they’re funded, it’s probably just stealing from new buyers to pay old ones. The rug pull isn’t a bug—it’s the feature. The best defense? Slow down. Do your homework. Ask: who’s behind this? Where’s the code? Is the liquidity locked? If you can’t answer those, don’t click "Buy." The posts below show you real cases—like how Myanmar scam networks, North Korean hackers, and shady DEXs like ParamountDax operate. You’ll see exactly what to look for, what to ignore, and how to protect your money before it’s too late.
A rug pull is a crypto scam where developers trick investors by launching a fake token, pumping its price, then disappearing with the funds. Learn how they work, the red flags to spot, and how to protect yourself from losing everything.
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