Rug Pull

    A rug pull is a type of scam in which a shady blockchain project is “launched,” only for the founding team to steal investors’ money. Rug pulls are common in the decentralized finance (DeFi) ecosystem, where malicious actors can create a cryptocurrency, list it on a DEX, and pair it with an asset such as ether (ETH). The founders then withdraw funds from the liquidity pool after a large number of unsuspecting investors exchange their ETH for the listed token, leaving investors with essentially worthless assets.