- Rug Pulls are a nightmare for investors.
- Do Your Own Research (DYOR) is crucial to avoid rug pulls.
- Exploring different tools and using the right platforms are some steps one needs to follow.
Rug pulls like the Squid Game, OneCoin, and Luna Yield are arguably an investors’ biggest fear. Many fraudsters and unscrupulous players have targeted decentralized finance (DeFi) and cryptocurrency spaces, as they are two currently booming markets.
“Do your own research” (DYOR) is a well-known phrase among crypto enthusiasts. However, there’s a lack of information about precisely what this means, as one needs to ask how one can do research when one is not sure of what information is a scam and what is not. Other questions that need to be asked are: What are the rug pull symptoms, and how can you identify their supporters?
As part of this discussion, we’ll go through some of the most typical red flags in crypto projects, so you can avoid falling into the trap of the next scam.