Lead · Scam Detection
Due diligence lowers your odds of stepping on a mine — but what decides whether it cripples you is how big a position you put on.
Rachel Kim
·
June 03, 2026
In crypto, a project running off is one of the fastest ways for beginners to lose money. A rug pull is when a project team, after drawing in large sums, suddenly pulls liquidity or dumps, sending the token to zero in an instant and leaving investors wiped out. This piece teaches the basic due diligence to do before you buy into a new token.
## What a rug pull is
Literally, "pulling the rug...