Finance glossary
Rug Pull
Definition
A scam where crypto developers abandon a project and steal funds.
A rug pull is a crypto fraud where creators hype a token, attract investment, then drain the liquidity or sell their holdings and vanish, leaving the token worthless. Common in DeFi and memecoins, it is a major reason to scrutinize a project team and code.
In a sentence
Investors lost everything in a rug pull when the anonymous developers drained the funds and disappeared.
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