How Do Centralized Exchanges (CEXs) Mitigate Rug Pull Risks? ⎊ Path

How Do Centralized Exchanges (CEXs) Mitigate Rug Pull Risks?

CEXs employ rigorous listing standards, including extensive due diligence, team KYC, and code audits, before allowing a token to be traded. They act as gatekeepers, filtering out low-quality or scam projects.

Furthermore, they often manage the token's liquidity, making it much harder for a project team to execute a sudden, unauthorized withdrawal of funds.

How Do Market Makers Influence the Perception of a Soft Rug Pull?

What Are the Challenges and Limitations of International Cooperation in Prosecuting Crypto Scams?

What Is the Role of the “Bloom Filter” in Enabling SPV Clients to Request Relevant Data?

Can a Privacy Coin Project Still Be KYC-compliant at the Team Level?

How Do CEXs Legally Manage the Risk of Their Employees Trading on Listing Information?

How Does a Rug Pull Differ from Other Types of ICO Scams?

How Do Decentralized Exchanges Differ from Centralized Exchanges in the Context of Rug Pulls?

How Does an Exchange Mitigate the Risk of a “Rug Pull” in an IEO?

Glossar

Centralized Exchanges (CEXs)

Platform ⎊ Centralized exchanges serve as the primary venue for trading cryptocurrency spot and derivatives products.

Rug Pull

Fraud Mechanism ⎊ A Rug Pull is a malicious maneuver where the developers of a cryptocurrency project suddenly abandon it after artificially inflating the price, typically by draining the liquidity pool of its underlying assets and disappearing with the funds.