If you are investing in the Binance Smart Chain or are thinking of doing it you have to familiarize yourself with the term: Rug Pull.

I have already dedicated 2 articles to talk about DeFi platforms whose sole purpose is none other than to rob us, manipulate prices and manufacture crappy tokens that are useless.

We have to be well informed and protected from this garbage. We are almost forced to denounce them publicly when we see one. There are many people who are going to lose money because of these rabble. The FOMO can be good in its right measure, however, if it is accompanied by excessive greed it can cause large losses that are impossible to recover.

Within the Binance Smart Chain we will see dozens of projects. If we go to the Dappradar website, there are really about 7 that are succeeding, but that does not mean that there are only those, there are many that we do not know.

How do they attract investors? With APYs above 1000% or more, Telegram channels and Twitter accounts full of Bots to pretend they are important or famous.

The guys at Pancakeswap told us on Twitter a couple of times that because a page or application has copied their script and their Exchange and has an apparently good token, they have nothing to do with them. Pancakeswap is independent, it is not associated with any application, not even Binance. Binance has your back but they do not own Pancakeswap.

Many of these fraudulent platforms will do a Rug Pull. It means that when the liquidity pools are full and the token has skyrocketed in price, the thieves behind the project close the pools, lock the server so that it does not receive responses from the users, and sell all of its token shares sooner. that we do it. When we want to find out, our money is gone and our tokens are worth shit. Much less than the purchase value.

Anyone can mint a token today and make it unlimited, as long as they have notions of web development and programming they can do it. Hundreds of times. People will continue to fall.

Therefore, we have to avoid that our mind is dominated by greed. As human beings that we are, we will always tend towards abundance and the possibility of earning more in less time. When you are going to invest in a token, study well the project, its mission, who is behind it and if their social networks are really active or are they simple bots.

Remember, if you are looking for more security, do staking instead of buying liquidity tokens.