• A rug pull is a scam where developers abandon a crypto project, leaving investors with worthless tokens.
• Red flags include unknown developers, lack of liquidity lock, limits on sell orders, exploding price fluctuations, and suspiciously high yields.
• Examples of rug pulls include OneCoin, Squid Game, and AnubisDAO.
• Rug pulls are illegal in most jurisdictions and can result in fines, asset forfeiture, and prison sentences.
• Regulatory efforts are underway to better regulate crypto markets and protect investors. Show Less
