Basic Cryptonomics 101: Rugpulls (Per Listener Request)

Our core definition: someone makes money available to do something, then takes the money to prevent you from doing that something.

1. Someone inside the project takes all of the liquidity because they still had access.

2. Someone inside the project colludes with someone outside the project, where the money is funneled to them secretly (a bunch of brand new wallets spun up and bulk tokens dropped to them without explanation or verification) (Collusion)

3.Phony transactions that are used to pay a buddy, i.e. if a friend of one of the devs is paid to do contract development (Embezzlement scheme)

4. Consistently failing marketing - devs purposefully giving your money to bad marketing strategies but don't readjust (Incompetence)

5. One or more of the people behind the new project has been historically involved with projects that have been a #rugpull, or where the money for the new project came from another project where the original investors were not compensated (Ponzi scheme)

6. Paid shillers where the shillers receive large bags (or even if they buy at the lowest price) and then immediately dump the project, draining almost all of the value and causing #FOMO sells off the red (Marketing fraud)

There are plenty others.

The first sentence is our core definition - and they're very hard to identify in advance. Scammers are getting more elaborate than they used to be.