Rug Pull Crypto Fraud is Rampant, What is it?

Liputan6.com, Jakarta In crypto investment, there are several well-known fraud schemes that are detrimental to investors, one of which is the Rug Pull fraud scheme.

Launching from the Pintu Academy page, Wednesday (12/6/2024), Rug Pull is a form of fraud in crypto where developers abandon the project they have created, after collecting funds from investors.

They sell crypto assets from projects they develop simultaneously and in large quantities so that the value of the assets owned by investors becomes worthless.

The word Rug Pull is taken from an English parable, which has the literal meaning of pulling the carpet so that the person standing on it falls.

Usually a Rug Pull occurs in a short and fast period of time so that most small investors who follow the trend will be greatly harmed without understanding what is happening.

One of the Rug Pull cases that recently occurred was about Squid Game Tokens. After there was a lot of buzz about the Squid Game series which was widely discussed and became trending at the end of last year.

Then a crypto called Squid Game Token appeared, the buzz about Squid Game was exploited by irresponsible parties or people to create crypto with the aim of many people buying it because the series was being widely discussed.

Since the information was spread, the price of SQUID tokens suddenly increased drastically because many investors saw the promotion through various social media. Between October 26 and November 1, the price of Squid coins rose by more than 23 million percent. The increase turned into a decrease in price even to the point of having no price at all and everyone said the Squid coin was just a Rug Pull.

Based on information from Pintu Academy, to avoid Rug Pull, it is a good idea for investors to research first who the people or developers behind a crypto project are.

Apart from that, investors are also expected to avoid FOMO (Fear of Missing Out) because investing cannot just be done by joining in, but needs to understand everything in it.

Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Liputan6.com is not responsible for profits and losses arising from investment decisions.