How Do Decentralized Exchanges (DEXs) Facilitate Rug Pulls?

DEXs allow anyone to create a token and pair it with a base currency in a liquidity pool without central oversight or vetting. This ease of listing, often without KYC, provides a perfect environment for scammers to quickly launch a token, attract funds, and then execute a rug pull by removing the liquidity they initially provided.

The lack of regulatory barriers is the key enabler.