RISKS & SECURITY
Rug Pull (Rug Pull Scam)
Definition
A rug pull occurs when developers abandon a project and run away with investors' funds, often by removing liquidity from DEXs or exploiting backdoors in smart contracts.
Example
Example
A new DeFi token launches, attracts millions in liquidity, then developers remove all liquidity and disappear, leaving investors with worthless tokens.
Risks to Consider
Risks
- Total loss of funds
- No legal recourse
- Project abandonment
