Glossary > Rug pull

Rug pull

What is a rug pull?

A rug pull is a kind of cryptocurrency scam. The developer of a project will simply abandon the project and run away with investors’ funds, leaving them defrauded. This kind of scam usually happens in decentralized finance (DeFi)

To do so, the project’s developer will promote it to attract more and more funds. Once the project has a high value, the developer pulls the rug and flees with investors’ money.