Stay Safe in Crypto: Avoid Rug Pulls!

Learn how to identify and avoid scams in the crypto space. Empower yourself with knowledge and secure your investments.

What is Rug Pulling?

A rug pull is a type of scam in the cryptocurrency world where developers abandon a project and run away with investors' funds. Rug pulls often happen in decentralized finance (DeFi) and memecoins, where liquidity is key.

What is Rug Pulling?

Types of Rug Pulls

How to Spot Rug Pulls

Steps to Stay Safe

Before investing, ensure you research the project thoroughly. Avoid projects with anonymous teams, and always use trusted platforms to verify contracts.

Helpful Tools

Exhibit A - Token Copycat

One of the ways to increase the odds of your rugpull being succesfull is to use expected coin releases. In the early days of VSC, Conan was one of them. As time was coming closer and closer to the release of this coin, you could use the VSC explorer to see new coins with name CONAN (HERO) being released. At the time, the contract address of the upcoming coin was not known. Considering how much hype was build shortly before the release, people were ready to put their VSG into this coin the instant it was released.

So, naturally, when a coin named the same went out, people wanted to get ahead and be first to buy them, only to find out, this was a copycat created by person with malicious intent.

Shortly after, any copycat that gained traction had liquidity pulled out before you blinked.

Always make sure you have the correct contract address, from a verified source!!!