CryptoGal Glossary
Rug Pull
When the creators of a crypto project abandon it and take investor funds with them, leaving the token or app worthless.
A rug pull is when a project team hypes a new coin or platform, attracts money and attention, then disappears with the funds. The name comes from the phrase “pulling the rug out from under” the community.
How it works
The team launches a token with big promises. Influencers post about it. The price spikes as new buyers rush in. Once liquidity is high enough, the insiders sell their holdings, drain the pool, and vanish. What is left is a chart falling toward zero.
Red flags
- Anonymous team, no clear track record.
- Urgent buy pressure and coordinated influencer posts.
- Promises of guaranteed returns.
How to protect yourself
Slow down. If a project needs you to buy immediately or miss out, it is designed to rush you past your instincts. Real projects welcome careful research.
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