What is Rug Pull

A crypto rug pull is when the founders of a project disappear with investors' money. In layperson's terms, the project team ran away. Investors can only fall to the ground miserably now, as the rug under their feet is pulled away suddenly.

The rug pull is one of the most common forms of crypto scams. In this type of scam, a project gains rapid interest through marketing gimmicks and raising massive investments and suddenly stops withdrawals. The developers then drain out the entire fund (for example, some will drain the liquidity from a DEX pool). This can happen within minutes.