How Does a 'Honeypot' Scam Differ from a 'Rug Pull'? ⎊ Path

How Does a ‘Honeypot’ Scam Differ from a ‘Rug Pull’?

In a honeypot scam, the smart contract is coded to allow anyone to buy the token, but only the original developer can sell it. Investors are trapped with tokens they cannot unload, while the developer continues to profit from buys.

A rug pull involves the developer actively removing liquidity, making the token worthless for everyone.

What Is a “Rug Pull” and How Does Multisig Help Prevent It?

What Is a “Rug Pull” in the Context of a Liquidity Pool?

How Does an ‘Exit Scam’ Differ from a ‘Rug Pull’ in the Context of Cryptocurrency?

What Is “Slippage” in a DEX Trade and How Can It Be Exploited in a Scam?

What Is a Honeypot Scam in DeFi and How Does It Relate to an Exit Scam?

What Is a “Honeypot” Scam and How Is It Related to a Rug Pull?

Can a Developer Still Manipulate the Token Price Even If the Liquidity Is Locked?

What Is a “Rug Pull,” and How Does It Differ from a Vampire Attack in Terms of Malicious Intent?

Glossar

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.

Scam

Deception ⎊ A scam in the context of cryptocurrency involves deceptive practices designed to defraud investors by misrepresenting a project's legitimacy or potential returns.