π¨ Understanding Blockchain Scams
Blockchain and cryptocurrency offer revolutionary investment opportunities, but they also attract scammers looking to exploit investors through deceptive practices. The most common blockchain scams include rug pulls and the misuse of preloaded wallets.
π What is a Rug Pull?
A rug pull occurs when fraudulent crypto developers create a new token, aggressively market it to attract investment, and then abruptly abandon the project after draining the liquidity pools. This leaves investors with worthless tokens, causing substantial financial losses.
π΅οΈ How Rug Pulls Work:
- Token Creation: Scammers create tokens with appealing marketing promises.
- Liquidity Pool (LP): Tokens are paired with popular cryptocurrencies like BNB or ETH to create liquidity pools.
- Attract Investors: Heavy marketing,