Rug pulls and fake tokens

Lesson 3 of 3 · 4 min

Rug pull

The team creates a token, hypes it, and then sells everything or removes the liquidity. The price falls to almost zero.

Some token contracts let you buy but not sell. The chart only goes up because nobody can sell.

Scammers create tokens with the same name as famous ones. Check the contract address on the project's official site.

Be very careful with brand-new tokens and anonymous teams.
If you cannot sell a small test amount, do not buy more.
Unknown tokens that appear in your wallet can be bait: do not interact with their links.

For education only. Not financial advice.