{"content":"#CryptoClarityAct → "Today, we are talking about rug pulls." A *rug pull* is a common scam in crypto where project developers raise funds from investors and then disappear with the money. Types of rug pulls: 1. Liquidity removal: Developers add a token to a decentralized exchange (DEX) with liquidity, then withdraw all the funds after users buy in. 2. Malicious code: The smart contract contains functions that allow the developers to block token sales or drain wallets. 3. Fake projects: DeFi or NFT projects promising high returns with no real utility or development behind them. Signs of a rug pull: - No identifiable or verifiable team. - No code audit. - Unrealistic promises (e.g., 1000% APY). - Unlocked liquidity or sudden liquidity withdrawal. - Vague communication or sudden disappearance from social media. Always do your own research (DYOR) before investing in any crypto project.","images":[],"tags":[],"tradingPairs":[],"quotearticleid":0}