What is rug pull in crypto?

What Is Rug Pull in Crypto?

A rug pull is when the creators of a token or DeFi project take investors' money and disappear. They might remove liquidity from a pool so you cannot sell, or dump their tokens and leave. Rug pulls are common in new or anonymous projects and in DeFi. To reduce risk: avoid tokens with no audit, anonymous teams, or unrealistic promises. Do not invest more than you can afford to lose in speculative tokens. Stick to well-known projects and platforms when possible.