Rug Pull: What is It and How Will It Kill Your GAINZ
By | Updated April 8th, 2024
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What is a Rug Pull?
A rug pull in crypto occurs when developers stop working on a project and steal investors’ funds. Rug pulls can occur in a number of ways: Devs draining funds from smart contracts, insiders shilling their bags of shitcoins only to dump on retail, etc.
Needless to say, rug pulls and rug pullers are not popular people in the DeFi community.
Bigger rug pulls are no joke:
A $60m rug pull dats insane
— shamdoo (@TheShamdoo) October 29, 2021
But sometimes they’re funny anyway:
Investors will buy certain coins believing them to be rug proof:
$MOVR on the path to crypto greatness #noVC is a huge thing! No rug pull bs or pnd sheit #wgmi #moonriver #MOVRment $DOT pic.twitter.com/ExNl36Pq2y
— Chef Kam (@kusamanator) October 25, 2021
But not every rug pull is the end of the world. And for some crypto denizens, having a couple rug pulls under your belt is a badge of honor.
bears like "this rugpull gonna be brutal bro" pic.twitter.com/qLdacGhgdd
— 𝕦𝕝𝕥𝕣𝕒𝕩𝕓𝕥 (@UltraXBT) October 17, 2021
Remember, though, in the world of crypto, if it seems too good to be true, it’s probably totally true. (Not financial advice.)