How to Prevent Getting Rug-Pulled in Crypto Investment? part 2
Rug pull is one of the scams that has long been happening in the crypto world. Many have fallen victim to the various modus operandi of scammers or fraudsters. We made a few lists that could be signs of carpet pulling.
Here are the common sign of a rug pulls
No website movement or inactive social media channels.
Are the developers active? Are they holding an event? Do they respond to all inquiries? Are they creating a way for their community to thrive?
If all the answers to the above questions are negative — 100% it is a big red flag. As much as possible, this is one of the signs you will look for first, especially if many are commenting or reviewing the NFT project you want to get into. There are influencers on various social media platforms where you can source information, and you can ask them to comment on who is legit and who is not.
Too many promotions
It is also one of the signs that it is a scam but, it is the opposite of the one mentioned above. Legitimate cryptocurrencies and NFT projects thrive on liquidity and results while rug pulls thrive on FOMO and attention. They display energetic vibes and entice you to join because they have a lot of ads and information displayed. Some spam your social media feed while others take the services of several influencers to promote their projects. At first, you won’t notice that it’s a scam, but if you monitor and investigate their moves, it will be suspicious peculiarly since the release date of the project/app is not yet certain. Excessive enthusiasm is never a good sign.
The project materialized overnight.
When someone offers you or you come across one of the NFT projects that just came out almost overnight — it’s a big Red Flag. NFT projects, legit cryptocurrencies, or any DEFI projects take a long time to develop and there are many processes to go through before they can launch to the public. These fake projects are often accompanied by massive hype from fake or dummy accounts. They can also copy a legit NFT project or DEFI project or cryptocurrencies, and then they will create their own website and social media to divert victims and gain their trust.
Sudden price increases.
After hype their project on social media, the value of their tokens increased. These are some of the things that scam developers often do. The usual reason they tell their investors is that the project is popular and easily enjoyed by the masses but in reality, the tokens are worthless. There were scam projects on NFT reported this past year such as Justice Arena and Squid Game (not affiliated with the Netflix runaway series) that many invested in but eventually turned into scams. Investigate immediately the sudden price increase of a token you want to join that project/app, and it could be a sign of a rug pull scam.
Stay tune with my Medium page because I will be adding something to the list
While waiting for the new update, read this article: Enter to Metaverse: harmonic transition of Capitalism, Gaming and Cryptocurrency
Interact and join our Telegram group or Discord server to chat directly with the team members and Chrono community
Official Telegram Announcement Channel: t.me/chronoadventures
Discord Channel: discord.gg/E7j5QPpAC3
Our official Website: https://chronoadventures.com/
And also don’t forget to follow us on social media!
Instagram: instagram.com/chronoadventures
Twitter: twitter.com/AdventureChrono
Facebook: https://www.facebook.com/chronoadventures
Official Youtube Channel: https://www.youtube.com/channel/UCwEcMjQs5fqzmaFHopiNSmA
