Intermediate Blockchain & Web3
Q78 / 100

What is a "rug pull" in the context of crypto projects?

Correct! Well done.

Incorrect.

The correct answer is A) A scam where developers abandon a project and withdraw liquidity or funds, leaving investors with worthless tokens

A

Correct Answer

A scam where developers abandon a project and withdraw liquidity or funds, leaving investors with worthless tokens

Explanation

Rug pulls occur when project insiders remove liquidity or sell large token holdings suddenly, crashing the token's value and leaving other holders with losses.

Progress
78/100