Rug pulls

A rug pull is a scam in the cryptocurrency and decentralized finance (DeFi) space where developers create a new digital asset or project, attract investors, and then suddenly withdraw all the invested funds, causing the asset’s value to plummet. Essentially, the developers “pull the rug out” from under investors, leaving them with worthless tokens. This often occurs in unregulated environments with minimal oversight, highlighting the importance of due diligence when investing in new crypto projects.