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What Is the Risk of “Rug Pulls” in the Context of DeFi Dapps?

Developers secretly remove all pooled assets, causing the token's value to crash, leaving investors with losses.
Greeks.Live29.10.25

What Is the Risk of “Rug Pulls” in the Context of DeFi Dapps?

A "rug pull" is a malicious maneuver in the cryptocurrency space where developers suddenly drain all the liquidity from a project's liquidity pool and abandon the project. This typically happens with new tokens on Decentralized Exchanges (DEXs).

Investors are left with worthless tokens because the token's value collapses to zero. It is a major form of exit scam in DeFi.

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