Rug Pull

A crypto rug pull is a type of scam in the cryptocurrency space where the developers of a cryptocurrency or decentralized finance (DeFi) project suddenly withdraw all of the liquidity or funds from the project, leaving investors with worthless tokens. This usually happens in projects that are poorly vetted or lacking transparency. In a rug pull, the project’s creators might promote the token or platform to attract investors, only to disappear with the funds once a sufficient amount of money has been invested, leaving participants unable to sell their tokens or recover their investment. It is called a "rug pull" because it is like someone pulling a rug out from under you, causing you to lose everything unexpectedly. Payouts will be made after the DAO system confirms a project has removed a minimum of 50% of its liquidity without informing investors.