Skip to main content

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

A "rug pull" is a type of exit scam where the developers of a project abandon it and run away with investors' funds. This often happens in the decentralized finance (DeFi) space, where developers can create a new token and list it on a decentralized exchange, only to withdraw all the liquidity and disappear, leaving the token worthless.

What Is “Liquidity” in the Context of a DeFi Rug Pull?
How Does a “Rug Pull” Differ from a “Pump and Dump” in the Crypto Space?
What Is the Risk of “Rug Pull” in the Context of Providing Liquidity to a New Token Pair?
What Recourse Do Investors Have If an ICO Project Fails?