Don’t Get Rug Pulled

[Awaklara]

Best way to win in this space is not by following hype, trends and stuff. Is playing it safe and knowing how to take the right risks, because some risks aren’t worth taking at all.

I know many people are interested in new coins because they can make huge profits in a short time. They try to manage the risk by putting in a small amount of money. But when they succeed with the small amount they invested, they become greedy and put in larger amounts to maximize their profits. 
Even though they have experienced and seen losses that could be 100%, they still view new coins with a chance of a rug pull as the fastest way to make money.

[FinneysTrueVision]

Something that isn’t mentioned in the OP is how tokens can become slow rug pulls over time. One of these examples is UNI. They are the most forked protocol in DeFi and have over $1 billion in daily trading volume. Yet their token’s price peaked a few months after launching and has been going down ever since, for 5 years straight.

The developers might say it’s because of regulation that they weren’t allowed to share their profit to those that played a major role in funding their success. In reality it was just greed that made them launch a token they didn’t have any intention of driving value towards.

[Outhue]

We are basically talking about altcoins here, I saw something in 2023 where a project raised millions of dollars and after a year into 2024 they exit the market, they stated that they didn't meet their target and they needed more money so this is the end of the road for them, if you ask me I would say this was intentional, they intentionally close the project down and run away with that money because they build nothing.

That project is all about DeFi and AI and they don't even listed on big exchanges like Binance, where I believe that the majority of projects spend money that they raised. Harder regulation still needed to be introduced in crypto space to get developers like this in the prison where they belong, so many of them have robbed people pretending to deliver something unique just to raise funds.

[Hypnotizer]

If you’re new to crypto the safest move is not buying unknown tokens at all . I know many will still buy but reduce it and focus more on solid project like Bitcoin (that’s safe and with a risk that’s easy to manage), many will still belike but the value is high already! Yes it is but doesn’t stop it from growing even further.

The best advice for newbies….focusing on Bitcoin alone for investment even when you  decide to diversify to other cryptocurrencies it is better you buy well known crypto not all these new tokens and memecoins.

Chasing quick gains in this space will most a times lead to loses so it is better to have the patience of Hodl long term rather than chasing one long green candle..

Let’s me start with this , first what’s rugpull!

Rug pull is when a project creators or founder create a fake cryptocurrency project, gains people's trust, and then suddenly pulls out all the money, leaving investors with worthless tokens . It’s not just a failed project it’s intentional fraud where the goals is to extract funds , not build value .

Ohh, I’ve heard of this scam before but I’ve not actually seen someone close to me fall for it and that’s why as a newbie in Crypto it is better  you don’t invest in most of these new projects, token and coins if you don’t want to fall for either pump and dump scams and this Rugpulling scams.

[ultrloa]

Best way to win in this space is not by following hype, trends and stuff. Is playing it safe and knowing how to take the right risks, because some risks aren’t worth taking at all.

I know many people are interested in new coins because they can make huge profits in a short time. They try to manage the risk by putting in a small amount of money. But when they succeed with the small amount they invested, they become greedy and put in larger amounts to maximize their profits. 
Even though they have experienced and seen losses that could be 100%, they still view new coins with a chance of a rug pull as the fastest way to make money.

Common action done by newbies since eventually they might think that if they used more bigger amount to invest or buy those new coins they see in the market, they probably could earn more. That greedy thoughts usually put them on danger because this situation usually been exploited by those scammers.

Many times we have seen those project perform good on early phase, but once they earn the trust of people then they put more scamming situations will follow after that. With those situation I really think that its better for those coins to abandon once they already gain and much better not to comeback since there's huge chances that rug pull schemes might gonna happen after the project gains lots of volume.

[michellee]

The thing you can do is research and only use the money you can afford. That is the best suggestion that I always remember till now. If I feel suspicious to the project, I will leave it and search for other project.

Maybe the research showing the good result but if my feeling feels not right, I will not involve to the project. That is playing it safe for me and that is the way to avoid scam projects.

But the method is not always works because we could be careless and forget something without we realizes.

Only carefully that we can do to avoid the rugpull projects.

[sheenshane]

Best way to win in this space is not by following hype, trends and stuff. Is playing it safe and knowing how to take the right risks, because some risks aren’t worth taking at all.

I know many people are interested in new coins because they can make huge profits in a short time. They try to manage the risk by putting in a small amount of money. But when they succeed with the small amount they invested, they become greedy and put in larger amounts to maximize their profits. 
Even though they have experienced and seen losses that could be 100%, they still view new coins with a chance of a rug pull as the fastest way to make money.

These kinds of investors aren't true investors because they seek profit in a short period.
I prefer to call them gamblers, since they know it's a high-risk investment in a new project, even when they know it clearly lacks a product or seems like a scheme.

However, there are also clever investors I've personally met who invest in new projects but exit after reaching their target profit.  IMO, invest only if the probability-weighted expected value exceeds your hurdle rate after accounting for risk.

It's easy to avoid rug pull projects, just don't invest them especially in shitcoin or in a hype projects.
Stick to Bitcoin if you don't want to invest like a gambler, it's a safe haven.

[Die_empty]

The thing you can do is research and only use the money you can afford. That is the best suggestion that I always remember till now. If I feel suspicious to the project, I will leave it and search for other project.

Maybe the research showing the good result but if my feeling feels not right, I will not involve to the project. That is playing it safe for me and that is the way to avoid scam projects.

But the method is not always works because we could be careless and forget something without we realizes.

Only carefully that we can do to avoid the rugpull projects.

Buying altcoins is pure gambling. Researching these tokens might not unveil the profitability or genuineness of such coins. These coins are usually hyped through different avenues. Some of them have a well-written whitepaper that projects the project as the best. Identifying projects that will rug pull is always hard because they will act right to gain the trust of investors. Some people go to the extent of taking loans to buy these altcoins. Just as you said, these coins are risky that is why they should invest what they can afford to lose..

[sunsilk]

The main lesson is to stick with Bitcoin.

Most of the investors that gets rug pulled are those who are not content with what they're holding through Bitcoin. We all understand that we want to have more stacks of different crypto to have it diversified.

But it's proven and tested that if you're holding Bitcoin, the chance of getting rug pulled is low to zero because it won't happen to it while you're holding it on your own wallet.

There is a new pattern I have seen with new projects and that is what has been going around projects even the so called venture capital doing all series of fund raising, they are basically upgraded scam with little money and fame trying to make money from the market. If you observe very well, there has not been a bull run for Altcoins, this has increased many people trying to become a team where they allocate all huge allocation to their self, make listing and sell everything on open market.

Just check around new coins that are listed on Binance exchanges, they are dead with little to no liquidity, the bag holders are waiting for one big candle so they can sell and move on with their life. One bad thing about these projects is that they can remain their for long period of time while the coins will be dumping 99% upon another 99% until you have nothing to the wallet anymore. Have seen billions worth of market worth less than $30 million, that's shit crypto for you.

That's a wild ride for crypto and those who have been chasing the new projects thinking they'd hit a jackpot with it are the ones they're targeting.

While exchanges simply earn from these new projects with its listing fees and as well as commissions from the supply they get.

Once they have no use anymore, they'll delist it and that's how business goes for the exchanges. And this leaves the investors that are gullible that fell for these new projects.