Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Reading: How to Spot a Rug Pull?
Share
  • bitcoinBitcoin(BTC)$28,147.00
  • ethereumEthereum(ETH)$1,806.56
  • tetherTether(USDT)$1.00
  • binancecoinBNB(BNB)$316.92
  • usd-coinUSD Coin(USDC)$1.00
  • rippleXRP(XRP)$0.53
  • cardanoCardano(ADA)$0.395985
  • staked-etherLido Staked Ether(STETH)$1,803.88
  • dogecoinDogecoin(DOGE)$0.075927
  • matic-networkPolygon(MATIC)$1.09
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > How to Spot a Rug Pull?
News

How to Spot a Rug Pull?

Rose Nnamdi
Last updated: 2023/03/08 at 11:47 AM
Rose Nnamdi Published March 10, 2022 March 8, 2023
Share
How to Avoid A Rug Pull

Rug pull is a common scenario in the decentralized finance space, and it is crucial to find out the telltale signs. Rug pull involves the team members withdrawing their backing of the project. They withdraw their support after selling the native tokens to others. 

Cases of founders disappearing into thin air or suddenly withdrawing their support of the project exist. The token’s value usually plummets and falls to near zero when this occurs. 

Below are some signs that a rug pull may occur. 

  • Vague whitepaper

The whitepaper is meant to detail the different aspects of a project – from its business model, use cases, tokenomics, and much more. In addition, it is the tool to communicate with potential investors on what the project intends to offer. If a whitepaper is ambiguous and doesn’t state what the project represents, then a rug pull may occur in the future. 

  • Poor team credibility

When a team has little or no credibility, then there is a chance that they may abandon the project in the future. To verify credibility, check their history, achievements, employment history, connections in the industry, social media, and much more. 

  • Unrealistic expectations

It may be a red flag when a project claims that it will bring unrealistic returns to those who buy their native tokens. The percentage of returns that they offer may seem outrageous. Features that the project claims it will offer may seem unachievable. If the aforementioned occurs, then it is a red flag. 

  • Listing on only Decentralized Exchanges

Most Decentralized Exchanges have a permissionless listing system, meaning that anyone can list their token there without any verification process. If a token is listed only on decentralized exchanges, a rug pull may occur in the future. Once a check is done, and you realize that only a few wallets hold the coin in large bulk, that’s a sign of trouble. 

You Might Also Like

SEC Head Gensler Seeks $2.4B to Fight Crypto Corruption

MetaMask Issues Warning on Fake Airdrop Rumors

VC Bets Big on Bitcoin Price Hitting $1M By June

Voyager Liquidating SHIB, Ethereum, SUSHI, LINK, COMP and Other Cryptos

Solana Price Analysis: Institutional Investment Boosts SOL Bullish Momentum

Share this Article
Facebook Twitter Email Copy Link Print
Previous Article What are liquidity pools in DeFi? What are liquidity pools in DeFi?
Next Article What Is a Flash Loan? What Is a Flash Loan In Crypto?
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
Gary Gensler SEC US Crypto
SEC Head Gensler Seeks $2.4B to Fight Crypto Corruption
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?