How to Detect Crypto Rug Pull?

[Suba]

Rug pull is a crypto scam trick where crypto developers after the desired crowdfunding amount is reached, the developers suddenly leave and take the investors' money away. There are several styles of rugpull such as Technical manipulation, Developers cashing out and Stealing liquidity. An example of a crypto rug pull case is the SQUID token, OneCoin. Luna Yield etc. Initially, the developer launched a project that looked like it had potential. Once the project won the trust of investors, they raised funds and started encouraging the community. Subsequently, the developer suddenly disappeared with the funds. The only way I know of to prevent Rugpull is to check the developer's identity, if they are anonymous the chances of rugpull are even greater. Of course there are still many ways to detect rugpull and prevent losses, How do you prevent rugpull, please share.

 

[Jasz]

Detect Crypto Rug Pull

Cryptocurrency rug pulls are a very real threat to your financial future, but they do not have to be.

There are ways that you can detect crypto rug pulls early on so you can protect yourself and your money.

The first step is to understand what a crypto rug pull is and why it happens. In this guide, we'll show you how to detect and avoid these scams.
A rug pull is a coordinated event with the goal of stealing money from people who invested in an ICO or an IEO. The main idea behind a rug pull is to collect a certain amount of money, and then simply withdraw that money by closing the project.

Usually, people who execute rug pulls try to escape negative publicity by hiding the fact that they are no longer working on their projects. Because of that, it can be very hard to detect them beforehand as you don't see any obvious signs of a scam until it's too late.

As mentioned above, there are many ways to spot a fake project. However, we will focus on four main aspects: the real address of the team, social media presence, trading volume and listing platforms. Let's take a closer look at each one of those and see what you should be looking for.