Connect with us

Cryptocurrency

What is Rug Pull? How to Avoid Rug Pull-in Crypto in 2022

What is Rug Pull? How to Avoid Rug Pull-in Crypto. Things to Know About Rug Pull. Rug Pull is a type of scam where developers abandon a project and take their investors’ money.

Published

on

What is Rug Pull

What is Rug Pull?

is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds. Rug pulls usually happen in the decentralized finance (DeFi) ecosystem, especially on decentralized exchanges (DEXs), where malicious individuals create a token and list it on a DEX, then pair it with a leading cryptocurrency like Ethereum.

Once a significant amount of unsuspecting investors swap their ETH for the listed token, the creators then withdraw everything from the liquidity pool, driving the coin’s price to zero. The coin’s creators may even create a temporary hype around Telegram, Twitter, and other social media platforms and initially inject a substantial amount of liquidity into their pool to cultivate investor confidence.

How Does a Rug Pull Happen?

Rug pulls thrive on DEXs because these types of exchanges allow users to list tokens for free and without audit, unlike in centralized cryptocurrency exchanges. Furthermore, creating tokens on open-source blockchain protocols like Ethereum is easy and free. Malicious actors use these two factors to their advantage.

Note that decentralized exchanges such as Uniswap algorithmically determine the prices of tokens in a pool depending on the available balances. To ensure you don’t fall victim to a rug pull, check the liquidity in a pool. However, this is only the first step. You must also check if there is a lock on the token’s pool. Most reputable projects lock pooled liquidity for a certain period. Another major characteristic of a possible rug pull is a coin skyrocketing in price within hours. For example, a rug pull coin can move from 0 to 50X within 24 hours. This trick is meant to drive FOMO that leads more people to invest in the token.

In order for a project to be deemed “undruggable,” it means that there aren’t a significant amount of tokens held by the development team. Without the signature large amount of team-held tokens that could be taken in a rug pull or exit scam, a project could be considered unreliable. What is Rug Pull?

What is Rug Pull?

What is Rug Pull?

How to Avoid Rug Pull in Crypto

There are online tools that can help detect a rug pull, and Token Sniffer is one of them. For starters, Token Sniffer lists all the latest hacks and scam coins, so if you find a project on its list, then you know it’s a rug pull. Second, the site offers an automated audit for tokens, analyzing their smart contracts, liquidity, and how similar they are to other projects, offering users a risk score for each token.

Rug Doctor is another useful tool for spotting exit scams. The site analyzes the code of crypto projects, trying to identify the most common rug-pull strategies. Once Rug Doctor finds a high-risk token or Defi project, it lists it on its website, adding a risk score and breaking down the red flags found in the project. Rug Pull

Finally, for a high level of spam detection, you will need a blockchain explorer like Etherscan or Binance Smart Chain explorer. By searching for the token address of a cryptocurrency, a Token Tracker Page will appear, usually under the More Info section. The tracker will display the total supply, number of total holders, and transfers, and you should be able to click on Holders to also display the wallets holding the largest amounts of the token. 

For new cryptocurrencies, if the top 10 wallets hold more than 20% of the token, or worse, a large percentage of the token is held in a single wallet, then this is a dangerous sign of a potential rug pull. If one or more of these top wallets sell all their tokens in an exit scam, the price of the crypto will crash.

Credit to FORKAST,NEWS

READ THIS POST  Poly Network Hack, More Than $600 Million Stolen in PolyNetwork, Biggest Crypto Hack Ever

I hope this content was helpful and great live a comment and share.

Are you a crypto trader looking for where to start registering now on Binance a good and low fees platform Binance START TRADING

What is Rug Pull?

READ THIS POST  New Zealand Dollar: Credit Suisse Turn Bearish

Kingsley Francis is the founder and Partner at Fxkinfin Financial Advocates, owners of fxkinfin.com. He is a financial writer with extensive experience in print as well as online media.

Cryptocurrency

Will cryptocurrency replace cash? Expert Advice in 2022

Will cryptocurrency replace cash? Dan Dolev says that this is definitive proof of crypto not replacing cash ever. cryptocurrency replaces fiat currency. cryptocurrency is replacing the dollar.

Published

on

cryptocurrency replace cash

Does cryptocurrency replace cash?

Financial tech analyst Dan Dolev says that this is definitive proof of crypto not replacing cash ever. According to him, cryptocurrencies are so insignificant mainly because of the reasons why people buy and trade them

Will cryptocurrency replace cash?

“Consumers and businesses are increasingly looking to make cryptocurrency transactions. Perhaps most of them want to trade, however, as transactions in digital currencies become easier and the regulatory framework is clearer, digital currencies can stand on a par with conventional ones,” — these are the words from Sheena Shah, Morgan Stanley’s Lead Cryptocurrency Analyst.

On the Thoughts on the Market podcast, Sheena also mentioned that the time has come for the stability and acceptance of cryptocurrencies to grow exponentially.

Will cryptocurrency replace cash?

Many crypto companies and exchanges have already issued Visa and Mastercard cards for making payments in crypto assets. A few governments have proposed bills to allow paying taxes in crypto.

Mark my words: the concept of being crypto-friendly will soon become common sense

Keep viewing more about Cryptocurrency Find out more Here: Crypto

Learn how to make from $100 to $1000 a month online doing nothing CLICK HERE

READ THIS POST  Why the cryptocurrency market will last long
Continue Reading

Cryptocurrency

So Janet Yellen loves bitcoin now?

Janet Yellen Crypto. U.S. Treasury Secretary Janet Yellen acknowledged crypto’s growing role in American finance. She also said she’ll work towards creating a regulatory environment which should be good for continued innovation. Janet Yellen Bitcoin. Janet Yellen Net Worth.

Published

on

Janet Yellen Net Worth

Janet Yellen News

In a recent interview, U.S. Treasury Secretary Janet acknowledged crypto’s growing role in American finance. She also said she’ll work towards creating a regulatory environment which should be good for continued innovation.

Janet Yellen Bitcoin

“There have been benefits from crypto and we recognize that innovation in the payment system can be a healthy thing,” — quote from the CNBC interview.

A year ago she was the one warning that bitcoin is an “extremely inefficient” way to conduct monetary transactions

janet yellen cryptocurrency

This change of mind is what crypto truly deserves, isn’t it?

Keep viewing more about Cryptocurrency Find out more Here: Crypto

Learn how to make from $100 to $1000 a month online doing nothing CLICK HERE

READ THIS POST  Why Blockchain market cap could reach the total size of $104 trillion in 2030
Continue Reading

Cryptocurrency

Unbound Finance, How to Become An Ambassador of Unbound Finance

Unbound Finance. Unbound Finance is an Ethereum based lending protocol that uses the liquidity of Automated Market Makers (Uniswap, Curve.fi, etc.) as collateral. Become An Ambassador of Unbound Finance. Unbound Finance.

Published

on

Unbound Finance Ambassador

Unbound Finance

Unbound is an Ethereum based lending protocol that uses the liquidity of Automated Market Makers (Uniswap, Curve.fi, etc.) as collateral. Users are bound by highly secured, perpetual smart contracts and are free from the risk of their collateral being liquidated

What is Unbound Finance?

Unbound Finance is a decentralized, cross-chain liquidity protocol that is building the next money lego by unlocking the liquidity from AMMs.

The protocol is the ‘First-Ever-Debt-Free Liquidity Provision System’ that collateralizes LPTs to generate synthetic assets including UND and uETH. The protocol charges no interest and is liquidation-free.

Become An Ambassador of Unbound Finance

Unbound Finance

They’ve recently announced a Global Ambassador Program where participants can actively participate in the promotion and development of the project by creating memes, GIFs, articles, communicating with other members and so much more.

All ambassadors will be entitled to rewards in $UNB tokens, special NFTs and access to exclusive events.

The best part is that you can apply by simply sending an email directly to the team! Make sure to dive into valuable details on how you can help and what’s your motivation to participate.

Write to partners@unbound.finance And good luck.

Learn more about Unbound: CLICK HERE

Dan Morehead, CEO Pantera Capital

“Unbound has a great potential for developing a leadership position in the large and fast growing DeFi space. It gives us immense pleasure to support the Unbound team as they build innovative and strategic tools to capitalize upon the untouched arenas of the crypto industry.”

Keep viewing more about Cryptocurrency Find out more Here: Crypto

READ THIS POST  Shiba Inu Coin, Latest Price Prediction in June 2021, will Shiba Coin Reach $1, What You Should Know!
Continue Reading

Cryptocurrency

Itheum Raises Fresh Capital in The Latest Funding

Itheum Raises Fresh Capital in The Latest Funding. Itheum also entered the Elrond Ecosystem by becoming the second-ever official project to join the Maiar Launchpad. Itheum.

Published

on

Itheum Raises

Itheum Raises Fresh Capital

The session has attracted well-established web3 and investment firms, including Elrond Foundation, Mechanism Capital, Ascensive Assets, Woodstock, Skynet EGLD Capital, ZBS Capital, MHC Digital Finance, and others. The project has raised $4M in total (including an additional $1.5M via Elrond Dubai Incubator), confirming a substantial interest across prominent VCs and investors of the crypto space.

Last week, Itheum also entered the Elrond Ecosystem by becoming the second-ever official project to join the Maiar Launchpad.

Itheum Raises Fresh Capital

Itheum Raises Fresh Capital

This partnership represents another important milestone, and it affirms the hard work and dedication the Itheum team has performed to date. Besides, the collaboration with the Maiar Launchpad shaped an excellent opportunity to bring the service to more users and developers.

Read the full announcement: READ MORE

Learn more about holoride: Itheum

Keep viewing more about Cryptocurrency Find out more Here: Crypto

READ THIS POST  Is The Next CryptoCurrency Crash Near Or Ripple's CTO Advises Investors To Reduced On 2021
Continue Reading

Cryptocurrency

Can You Buy Citizenship With Crypto?

Buy Citizenship With Crypto. Vanuatu is the first country that officially accepts bitcoin payments in exchange for citizenship. Buy Citizenship With Crypto. Vanuatu crypto citizenship.

Published

on

Buy Citizenship With Crypto

Buy Citizenship With Crypto

Vanuatu is the first country that officially accepts bitcoin payments in exchange for citizenship. Vanuatu bitcoin citizenship.

Also Saint Kitts and Nevis, an island country in the Caribbean, has curious citizenship by investment program. If you have $150,000 (~3.89 BTC) to invest, as long as you aren’t a crim, you can obtain a St. Kittian passport in exchange for it

Buy Citizenship With Crypto

Buy Citizenship With Crypto

This country is friendly to crypto investors. Crypto gains are not taxed there, capital gains tax on crypto aren’t imposed, and Bitcoin ATMs are placed throughout the country.

In Dubai, they seem to be very supportive of the blockchain technology and crypto

And I just have to ask: would you buy yourself citizenship to live in a crypto-friendly country?

Keep viewing more about Cryptocurrency Find out more Here: Crypto

READ THIS POST  Shiba Inu Coin, Latest Price Prediction in June 2021, will Shiba Coin Reach $1, What You Should Know!
Continue Reading

Trending