Press Release

How to Spot a Rug Pull?

Rug pulls are a thorn in the side of risk-taking investors eager to get in early on the hottest projects before they go big. This type of scam is proliferating these days due to the deafening hype around decentralized finance (DeFi), non-fungible tokens (NFTs), Web3, various metaverses and the promise of riches.

This is exacerbated by the crypto industry’s lack of regulation, sometimes misplaced faith in anonymous teams and the general demographic of crypto users, which consists mostly of millennials and Gen Z’s with excess funds, little fundamental understanding of crypto and often lacking real drive or incentive to learn the technical intricacies of blockchain technology. This is not a description of every crypto investor, but it does describe many of them!

So on today’s CoinMarketCap episode we explain what exactly a rug pull is and how you can avoid one..

0:00 Overview
1:44 How does a rug pull work?
3:40 NFT Rug Pulls
3:57 How to catch a rug pull
4:37 Anonymous or Fake Founders
5:44 Unrealistic Projected Returns on Investment
6:04 Unaudited Projects
6:57 Lack of Effort or Innovation
7:40 Funds Concentrated Among Handful of Holders
8:20 Stealth Mints

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