03-23-2022, 03:39 PM
Not everything is a rug pull
<!-- SC_OFF --><div class="md"><p>I see this thrown around all the time. If any scam is happening, even if a coin is just losing value, it has to be a rug pull. SHIB losing a lot of value within a few months? Rug pull. APE going from $1 to $17 within a few hours? Rug pull, because for like a minute it was higher than $17 when over-optimistic buyers bought up the liquidity on exchanges. Any coin that people dislike that is down from ATH? The devs pulled the rug I guess.</p> <p>Yeah, no. A rug pull is something pretty specific and the term isn't useful anymore if we use it for everything. But what is a rug pull? <a href="https://coinmarketcap.com/alexandria/glossary/rug-pull">CoinMarketCap Alexandria has a good definition</a>:</p> <blockquote> <p>A rug pull is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds. Rug pulls usually happen in the decentralized finance (DeFi) ecosystem, especially on decentralized exchanges (DEXs), where malicious individuals create a token and list it on a DEX, then pair it with a leading cryptocurrency like Ethereum. Once a significant amount of unsuspecting investors swap their ETH for the listed token, the creators then withdraw everything from the liquidity pool, driving the coin's price to zero. The coin’s creators may even create a temporary hype around Telegram, Twitter, and other social media platforms and initially inject a substantial amount of liquidity into their pool to cultivate investor confidence.</p> </blockquote> <p>So rug pulls are only possible if the creators of a coin hold a very big amount of tokens and can pull it off - and it's a very specific type of scam. You would notice if the rug of a project you hold was pulled - it would not go down over the span of a few months, or go up x17 within hours (lol), but would go pretty much to zero very fast.</p> <p>Neither SHIB nor APE seem to be scams (even though you could probably call them shitcoins), and absolutely did not get 'rugged'. Even if a coin goes to close to zero very fast (like TITAN last summer, if anyone remembers that) or if it was a scam (like Bitconnect, which was a ponzi scheme) they are not necessarily rug pulls - neither of those were!</p> <p>There are definitely famous examples of rug pulls, like SQUID recently. But not every token that loses value, and not even every scam, is a rug pull and the term loses all meaning if we apply it to everything.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/mic_droo"> /u/mic_droo </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tk738g/not_everything_is_a_rug_pull/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tk738g/not_everything_is_a_rug_pull/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I see this thrown around all the time. If any scam is happening, even if a coin is just losing value, it has to be a rug pull. SHIB losing a lot of value within a few months? Rug pull. APE going from $1 to $17 within a few hours? Rug pull, because for like a minute it was higher than $17 when over-optimistic buyers bought up the liquidity on exchanges. Any coin that people dislike that is down from ATH? The devs pulled the rug I guess.</p> <p>Yeah, no. A rug pull is something pretty specific and the term isn't useful anymore if we use it for everything. But what is a rug pull? <a href="https://coinmarketcap.com/alexandria/glossary/rug-pull">CoinMarketCap Alexandria has a good definition</a>:</p> <blockquote> <p>A rug pull is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds. Rug pulls usually happen in the decentralized finance (DeFi) ecosystem, especially on decentralized exchanges (DEXs), where malicious individuals create a token and list it on a DEX, then pair it with a leading cryptocurrency like Ethereum. Once a significant amount of unsuspecting investors swap their ETH for the listed token, the creators then withdraw everything from the liquidity pool, driving the coin's price to zero. The coin’s creators may even create a temporary hype around Telegram, Twitter, and other social media platforms and initially inject a substantial amount of liquidity into their pool to cultivate investor confidence.</p> </blockquote> <p>So rug pulls are only possible if the creators of a coin hold a very big amount of tokens and can pull it off - and it's a very specific type of scam. You would notice if the rug of a project you hold was pulled - it would not go down over the span of a few months, or go up x17 within hours (lol), but would go pretty much to zero very fast.</p> <p>Neither SHIB nor APE seem to be scams (even though you could probably call them shitcoins), and absolutely did not get 'rugged'. Even if a coin goes to close to zero very fast (like TITAN last summer, if anyone remembers that) or if it was a scam (like Bitconnect, which was a ponzi scheme) they are not necessarily rug pulls - neither of those were!</p> <p>There are definitely famous examples of rug pulls, like SQUID recently. But not every token that loses value, and not even every scam, is a rug pull and the term loses all meaning if we apply it to everything.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/mic_droo"> /u/mic_droo </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tk738g/not_everything_is_a_rug_pull/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tk738g/not_everything_is_a_rug_pull/">[comments]</a></span>Kind Regards R