A cryptocurrency scam
Did you see that TRUAMPL was just another rug pull? Glad I didn't buy into that one.
|ICO||Initial coin offering|
|Bagholder||A person who fails to sell a stock before it crashes|
|HODL||Hold on for dear life|
|Nocoiner||A person who owns no cryptocurrency|
|Airdrop||A cryptocurrency marketing event|
|Crypto Mom||SEC Commissioner Hester Peirce|
In the DeFi and cryptocurrency world, a "rug pull" is a scam in which an entity convinces people to buy into a new currency and then drains that currency's liquidity, devaluing the currency in the process. This leaves purchasers with worthless coins.
"Rug pull" is a derivative of the phrase "to pull the rug out from under someone," which means to upend someone or take away their support. In a crypto "rug pull," the crypto's developer takes away all support for the currency, leaving the currency's owners holding the bag.
Because DeFi and cryptocurrencies are largely unregulated, "rug pulls" are relatively easy to pull off. Before buying any cryptocurrency, make sure to do your DD (and especially, check whether the currency's liquidity is locked). Otherwise, you might "get rugged."