Rug pull is a new type of scam which is now a part of a long history of investment schemes that make investors lose a lot, if not all, of their money.
Derived from the popular expression “pulling the rug out” happens when investors are enticed or attracted by developers to put resources (usually a lot of money) into a new cryptocurrency project only for them (the developers) to “pull out” prematurely, fleeing with the funds pooled for the endeavor.
This usually happens in the decentralized finance (DeFi) ecosystem, particularly in decentralized exchanges (DEXs).
More often than not, a rug pull can happen right after a project’s introduction. Sometimes, however, those behind the scam take their time, prolonging the agony of their unsuspecting victims.
In line with this matter, a newly released report claims almost 98% of all tokens listed on the reputable crypto exchange Uniswap are malicious and accessories for scams.
Uniswap As Conduit For Rug Pulls?
According to the findings of Catalan Researchers, 26,957 out of the 27,588 tagged tokens listed on the 2018-launched Uniswap are considered to be scams or rug pulls.
There are only 631 assets inside the exchange’s ecosystem that could be considered non-malicious and thus are safe, for now.
The study was conducted by direct interaction with the Ethereum…
