Rug Pulls — A New Type Of Scam Involving Cryptocurrency

A rug pull occurs when project members raise capital or crypto to fund a project. Rug pull scams involve investment scammers pump a new project, nonfungible token or coin to get funding. Then scammers suddenly remove all of the liquidity and disappear.

Some examples of Rug pull projects are Neko Inu, SnowDog, Squid game, Mercenary, Blockverse, Luna Yield etc. Among these, Luna Yield is one of the biggest crypto rug pulls and is the most interesting of them all.

Recently, Dragoma on the Polygon Network was hit by a rug pull, leaving DMA holders in a fix. DMA price declined 99.8% since the incident.

$DMA token was listed on the DEX. Rug pull are most associated with DeFi projects that provide liquidity to DEXs. New projects are usually not listed on CEXs, meaning that a DEX is the only source of liquidity. So the advantage of CEX, like MEXC Global, is that they are never involved with RUG pulls and even protect the user from rug pull.