Hello to my friends who love life and always keep smiling despite all kinds of negativity. With the growth of Decentralized Finance (DEFI), the financial system of cryptocurrency markets, it has become the focus of scammers. In particular, the development of the Binance Smart Chain (BSC) network and the low cost have exploded in DEFI projects.
If you're wondering, let's get started…
Here I will focus on an important issue … “SOFT RUG” or “RUG PULL”
Maybe these terms may sound foreign to you, but my friends who follow the markets will remember when I tell them…
Current State;
As you know, with the start of the bull rise, thousands of cryptocurrency projects started to come to life. In particular, the Binance Smart Chain (BSC) network has simplified the implementation of projects, which has accelerated this process.
Copy cryptocurrencies; You can follow it on websites such as CoinMarketCap, Icodrops…
Previously, time was spent on code, current state whitepapers and security testing. This type of projects; The released and security tested code on Github of another project is also making some changes and publishing it. It publishes a one-page whitepaper on its website.
They are starting to raise funds via PancakeSwap on Binance Smart Chain (BSC). Then, DEFI projects attract investors by opening liquidity pools on their own platforms. To do this, they promise high returns.
Many of them pay as promised in the first days but what happens next…
By paying Youtubers for a fee, they recommend these projects to their followers via video and twitter. Since the market volumes are small, the value of cryptocurrencies increases excessively with the purchase of followers. Those who advertise this product say that it is a risky product, but no one listens and buys. His way of thinking is very simple; I'll invest $50 in luck, maybe I'll get rich…
The reason for this thought; Gains on shitcoins like dogecoin, Shib, …
The scammers who know these thoughts of people well are deceiving people.
Let's talk about “SOFT RUG” or “RUG PULL” … ?
RUG PULL; The developer or founders of the project emptied the pools and disappeared with cryptocurrencies
SOFT RUG; The developer or founders of the project only sell their own tokens and users leave the project without touching their assets.
In both, investors suffer losses.
Polywhale project has been shut down. It is claimed that they are selling by emptying the liquidity pool. Polywhale Finance, the first yield farm at Polygon, was abandoned by its founding team due to allegations that its liquidity pool was drained.
SharedStake, one of the developers of the Ethereum 2.0 staking protocol, announced that it was exposed to fraud by its own team member. One of the developers used the admin key to leverage the protocol's governance token SGT. Advised users to exit liquidity mining contracts and pools.
We can multiply examples.
My friends, such projects see what happens in a bear trend, not a bull trend… You will hear hundreds of these things. It has already started… My advice to you is; Money is not easily earned. Please do a good review for your investments for your future…
As I always say, listen to everyone, decide for yourself...
Buy when everyone is selling, sell when everyone is buying...
I'm looking forward to your comments. Thanks to your comments, we can shape my next articles together. Let's stay in touch... Take care of yourself so that you and the people around you will be happy...
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