Rug pull

A rug pull is a fraudulent act made by some cryptocurrency developers or traders that involves abruptly and intentionally wiping the value of a cryptocurrency, often resulting in tremendous losses for investors. The term is derived from the act of pulling a rug from someone at the time they least expect it or count on it. Usually, rug pullers will create a new cryptocurrency project that receives initial support from investors. As more investors pour in more funds, the rug puller will then suddenly sell off all their shares or tokens, causing the value of the cryptocurrency to drop significantly. This leaves investors with worthless tokens, resulting in massive financial losses. In summary, a rug pull is a form of manipulation that targets the financial investment of unsuspecting investors by making false promises, drawing investments, and suddenly pulling out to make huge profits.