Rug pull scams

[bhooscream]

Rug pull scams "pumping up" a new project, nonfungible token (NFT) or coin to get funding. After the scammers get the money, they disappear with it. The coding for these investments prevents people from selling the bitcoin after purchase, so investors are left with a valueless investment.

This rug pull scam is very common happening in the crypto business. However, this commonly uses both similar methods or even new methods. But finally, rug pull is coming and many people lose their money in that scam project. Commonly, there will be a very high hype, booming spreading news about the project, with or without influencers also that help the projects. I found that there are so many projects like this, that are always dead after listing, and many people especially newbies lose their money because they don't really know what they are investing in. Most victims are commonly newbies or even someone who really doesn't know what cryptocurrency is.
But, although there have been so many experiences, lessons, and also sharing about this, in fact, this seems like never-ending incident and also there will be new victims again

[Jackl87]

Rug pull scams "pumping up" a new project, nonfungible token (NFT) or coin to get funding. After the scammers get the money, they disappear with it. The coding for these investments prevents people from selling the bitcoin after purchase, so investors are left with a valueless investment.

As far as i know a rugpull is something different that the kind of scam that you are describing OP or i am just reading your message wrong. I don't know. What you describing is a traditional scam that happens not only in crypto but everywhere. People are collecting money from investors and make huge promises in order to get that money but then when they have it they are disappearing and take the money with them. This kind of stuff happens since centuries.
A rug pull is when a new project is launched on a DEX and then, after the trading has started and the token has pumped, the team removes the liquidity from the DEX so it can not be traded anymore, which means the scammers now have more ETH or stablecoin or whatever than before the rugpull.

[GreatArkansas]

Rug pull scams "pumping up" a new project, nonfungible token (NFT) or coin to get funding. After the scammers get the money, they disappear with it. The coding for these investments prevents people from selling the bitcoin after purchase, so investors are left with a valueless investment.

This rug pull scam is very common happening in the crypto business. However, this commonly uses both similar methods or even new methods. But finally, rug pull is coming and many people lose their money in that scam project.
(.....)

Most of these projects are using the same codebase or codes for their smart contracts and they just change the name or what just to lure people again to scam.
This is very worst, people must learn or know first what they are doing before putting their hard-earned money into these scam projects.
This will not end, for sure if this way will become popular and easy to identify as a scam, they will change it again or improve it just to make it looks legit.

[thmlarge]

The trade-off of investing primarily in more established assets: While cryptocurrency, in general, has seen periods of rapid price appreciation, the highest rewards may come from new projects where the risk is also higher. Newer projects don't have such a track record, which means there may be vulnerabilities that make it possible for their organizers to siphon value away from investors and keep it for themselves.

[TravelMug]

Rug pull scams "pumping up" a new project, nonfungible token (NFT) or coin to get funding. After the scammers get the money, they disappear with it. The coding for these investments prevents people from selling the bitcoin after purchase, so investors are left with a valueless investment.

Ok the way understand it is that developers are creating new projects and then pumping it up, creating a lot of hype and then suddenly disappear in crypto space with the money. And in the level code, these developers put something that the investors cannot sell their tokens?

In any case though, I wouldn't in the first place invest on such hype project or those who looks very suspicious in the first place. I know it's hard to know it in the beginning. But perhaps if you do your own research then maybe you will know that this project might look like a scam and obviously not to be trusted with even 1 satoshi.

[Jeger.Kiting]

Rug pull scams "pumping up" a new project, nonfungible token (NFT) or coin to get funding. After the scammers get the money, they disappear with it. The coding for these investments prevents people from selling the bitcoin after purchase, so investors are left with a valueless investment.

It seems that fraud is so rampant everywhere that they always justify any means to do it, like what you say here. Therefore, never believe in new projects that come and provide very attractive offers for everyone. So before investing you have to really do some research first so you don't get caught in the traps made by these scammers.

[makishart]

but not a few are stuck there, I am very surprised sometimes they already know that this project has the characteristics of rugpull but they still want to invest there with the reason that as long as they quickly withdraw profits there will be no losses and none of them make a profit in the end because they are always addicted to buying rugpull tokens.

They were actually gamblers. They do know so well if the project was a scam but they are still investing their money on that shit. I will not be surprised to see that if those people will be creating a complain later after they have lost their money to the scam project and scammers behind it. So, if they were making any complaints about that and let them feel what they didn't care about. I have seen so many investors without brain that keep investing in the shit token and then they are suffering the lose with it.

[gunhell16]

This had been normal operation of the scammers taking advantage of the Defi platform.  Since many believe that Defi platform are decentralized, they are unwary of the possible scam that will happen on the platform.  I think those who are pulling this kind of scams are the same group.  They are just creating new projects again and again, then rug pulling again and again.

Sometimes it seems like this is also the problem when the exchange that the tokens are going to is decentralized which makes this concept of Rugpull. This has happened several times in the crypto industry, and there are still victims of these scammers, maybe because there are many people who easily believe and are fooled by the good words from the scammers and they fall prey to them.

These exploitative scammers are a real headache. Therefore, more caution is needed with similar methods by these bad people here.

[TheUltraElite]

The trade-off of investing primarily in more established assets: While cryptocurrency, in general, has seen periods of rapid price appreciation, the highest rewards may come from new projects where the risk is also higher. Newer projects don't have such a track record, which means there may be vulnerabilities that make it possible for their organizers to siphon value away from investors and keep it for themselves.

The major profitable coin has been bitcoin and the major losses have been incurred by any shitcoin that you have seen in the last 6years or so. In no manner, has there been a correct trade-off, but only for the shills and advisors who pumped and dumped those coins.

The reason behind this is the lack of a proper market making property of such coins - the ability to generate a demand/supply non-equivalence so that the buying of such coins from exchanges exceeds the selling. If the users dont see any use of that coin, they will not buy it. If it solves a real life problem, they will buy it and use it.

Just because they dont have a track record, does not mean they are good. This is more applicable to the crypto market where scams are so common. You can find occasional profitable coins but only for short periods.