Rug Pulls In Cryptocurrency | Ways To Avoid Them

Asslamo-alikum to all of my friends of Steem Alliance Community.Is everything is ok? my friends.I am very fine and hoping mine friends are fine.Here's i came again for posting about cryptocurrency with the new topic, which is very interested and informative.I'm going to explore the rug pulls in cryptocurrency and also share the ways to avoid them.

Overview:- Rug pull in cryptocurrency has some fake projects that different developers who create a project and that project is fake, then they do a lot of marketing and make hype, so that more and more people invest in it.If more and more people invest in it, they withdraw all of it without launching it and all the investors lose.Fake projects in cryptocurrency is known as rug pulls in cryptocurrency and it's a scam.

Cryptocurrency is very high in today's modern era and many people are earning a lot from crypto currency so as people see other people they also want to earn money from crypto now.So when they enter the market, there are a lot of scammers in the market, some of these projects are fake projects of scammers, their main work is like a high gain a investment. Getting people to invest, when the investment is done, they run away.

Explanation:- In cryptocurrency, Rug pulls is basically a token like other crypto tokens, which crypto token is shown in the market and it is told that it is a big project that will benefit people a lot and its They show a low of value tokens first and tell that when this token is launched, its price will be very high, so invest in them quickly, when people think that it will be very profitable, they People buy more and more tokens, invest more and more, the scammer developers withdraw all the money and don't even launch the token.

In addition, rug pulls has any crypto token project that is shown to be a very large crypto-project, invest long in it, and when it is launched, it's price will be very high, people will buy any token at a specific amount, when the main token is launched, the value will be very low.By this the scammer who is he withdraws the money gain profit but the investors are in huge loses.These are the biggest scams in the cryptocurrency's market and many peoples are facing loose in these scams projects.

The reasons of the rug pulls are different and below are some of these, first reason that they also do market manipulation, in which they show some prices very high and in real it's low, in addition to this, they launch new tokens and old d tokens are out of supply and it can also happen that too many tokens are launched causing too much supply and too little demand for tokens. As many people who have invested in it have suffered huge losses in their investments.

Ways To Avoid:- In order to avoid such scams in cryptocurrency, first of all, if a person wants to invest in any project, first of all, he should know the history of the project, besides, see its developer whether he has been in a project before or not.Also do a thorough search of the project to see if it is really true or just a hype in the market.

According to the given project information to the developer of the project, find out how much supply of the token is available in the market, how long it will be launched in the market, how much supply will be launched, and then use all the technical analysis to check that this future is really a bright.If they do all the research that they will get away from scammers.

In addition to this, if you are going to invest it on any cryptocurrency exchange in such a project, first of all, take the information of the exchange that there have been fake projects launched before, or not, then check how they are doing. Apart from the project, keep in touch with their related research and active news and search as much as possible so that you can avoid these types of scams projects.

Conclusion :- So friends, that's all about rug pulls in cryptocurrency.It's a fraud that a developer team do with the investors by making a fame project and shown is as real and after getting investment they withdrawal the money and don't launch token and investors face loose.I have explain all the reasons of this scam and also explain some ways to avoid them.I hope mine all friends will understand about rug pulls in cryptocurrency after reading this post.Good Bye!