How Does a Project’s Treasury Wallet Management Relate to a Soft Rug Pull?
A project's treasury holds funds intended for development, marketing, and operations. If the team starts consistently and covertly selling off large amounts of the native token from the treasury wallet on the open market, it constitutes a soft rug pull.
Poor transparency in treasury management is a major red flag, as it allows the team to extract value without providing a clear justification.
