These docs are provided by the community please use at your own risk
These markets and times are crazy! So many new projects lots of them remarkable but an equal or greater amount are just complete SCAMS. This page is going to attempt to help you notice some of the signs that are usually present during a rugpull type event. If you are a complete beginner a rugpull is what us blockchainers call a launch event that ends in the devs collecting or raising funds for their project and then dissappearing off the face of the earth right after. As the one getting scammed you are the investor standing on the very expensive persian rug you just bought and the scammers are the one pulling it out from under you leaving you in a pile on the ground wondering what happened.
Do your own research (DYOR) if you see any of these signs below your rugpull radar should start going off.
Lack of presence from the team on the normal social mediums (TWITTER, TELEGRAM, WWW, DISCORD, FACEBOOK). Most rugpull groups skimp on the mediums they use for their socials. Certain services have made it more difficult for the scammers such as telegram where you need to have a registered phone number to participate.
Changes to the terms of the launch during the launch. Whenever anything changes in terms of the distribution or tokenomics of a project it should be a big red flag. Things like a large percentage airdrop changing to a small percenage pre-sale for example.
Lack of support from the staff of the project. If the project is going to succeed it needs to have all hands on deck at launch. When things start to derail like discord bots going offline with the load or websites crashing due to poor setup you should start asking yourself does this team really have the resources to pull off what they are attempting to.
Extreme time-sensativity to fullfilling requirements to get the tendies. One of the big factors in creating FOMO is to have an element of time remaining. Putting people on the spot to make a quick decision that can't be undone. This usually happens due to a change in the presale or IDO terms. An airdrop turning into a limited time pre-sale filled with promises of huge gains and immediate success.
The rugpull for this document was done by the CLUE Finance team. They were anonymous and had a very good scheme going. They drummed up the support for their scam token by saying they would airdrop a very large portion of the supply to their discord users. Then they had a quick meeting and decided that due to unprecidented support that they would do an instant pre-sale of 10% of their supply that would be distributed within 48 hours. Once they posted the pre-sale address in their discord they turned on their own bot to start making transactions to the address making it look like there was a lot of people sending SOL to their address again creating more FOMO.
Projects that have Rug Pulled
Links to avoid
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