Rug Pull

A Rug Pull refers to a financial scam in the cryptocurrency token or NFT crypto art space. Rug Pull scams typically involve the creation of tons of hype around a project which leads to more and more investors piling in. Crypto Rug Pulls and NFT Rug Pulls often include airdrops, wash trading, and liquidity injection to create demand and trading volume to increase the token price further. Once the scammers are happy with the project’s traction, they “pull the rug” and disappear with the customer’s stolen funds and crypto-assets. Rugpull is often used as a verb, as in “I got rug pulled” or “I got rugged”. The term can also be shortened to simply “rug” and, in some cases, is used to spread FUD about a project whereby people will type the term “rug” on crypto Twitter or inside of a particular project’s discord channel.