Nearly $10 billion were stolen in DeFi scams and thefts only in 2021, representing an 81% rise compared to 2020, and rugpulls accounted for over 35% of all crypto scam revenue.
This is according to a recent report by Elliptic. And while there are many types of scams that take place regularly within the cryptocurrency community, rugpulls are arguably the most infamous.
So, What is a Rugpull in Crypto?
A rugpull — from the phrase to pull the rug from underneath someone — refers to a type of scam where the development team behind a decentralized finance (DeFi) project runs away with investors’ funds by selling or draining its liquidity.
In DeFi, liquidity refers to the number of crypto assets poured into a liquidity pool and locked into a smart contract, and that’s a requirement for operating an automated market maker (AMM) and decentralized exchanges such as Uniswap.
To grasp at the basics of how Uniswap (and other similar DEXs) work, please take a look at our detailed guide.
In
We współpracy z: https://cryptopotato.com/rug-pulls-how-to-avoid/
