How to lose money in cryptocurrency : (Rugpulling )

[Josemendez]

Episode 1
Episode 2

Many investors have lost money in one way or the other in cryptocurrency but RUG-PULLING seems to be the most common way of losing money.

What is RUG-PULLING ? Rugpull is achieved when the developers of a coin pulls out the liquidity they added to the exchange where the coin is traded. This makes it difficult for the investors to sell their tokens because the liquidty that will process the buy is not available.

How do we know if a project will be rugpulled?

The fact is that it is not easy these days as some of the scammers are now very smart with their operations , however below are few strategies that can help .

1. Check if the liquidty is locked and ownership denounced . If the liquidty is locked , then there is no way the liquidty can be pulled out untill the expiration of the locking period.

2. Check if there are wallets with more than 40% of the total circulating supply . If a wallet has up to 60% of the circulating supply , it is probably the wallet of the developer and he can dump the tokens at once and crash the project.

3. Confirm using Binance scan that the claimed tokens were burned because there are techniques that makes a wallet appear to have less amount of tokens as it actually contains.

4. Do you research before investing in any project.

 

[HayKay]

Waoh. Amazing information you shared out there bro. I've learnt something especially about wallets that can hold more than 40% of total coins pointers to the fact that a developer could be the owner.
Thanks for sharing this, I'll definitely bookmark this post

 

[Chibson]

It is very important that people make a lot of research before they venture into any Cryptocurrency because there are a lot of scam coins out there.

 

[Josemendez]

Waoh. Amazing information you shared out there bro. I've learnt something especially about wallets that can hold more than 40% of total coins pointers to the fact that a developer could be the owner.
Thanks for sharing this, I'll definitely bookmark this post

Yeah. Such percentage are normally owned by the developers. No whale will buy a new coin up to 40% ,unless he knows the developers. The bottom line is that such people easily dump the coin and crash the market

 

[Mika]

Never heard of the term RUG-PULLING. I am a simple crypto enthusiastic who has invested some money in various crypto currencies and trying to hold them for an extended period of time.

 

[Nurudeen]

This is one of the major reason why crypto currency exchange Business needs to be regulated. You can imagine that some people have now used this the business to scam others which is very bad

 

[Senator]

These are what most shitcoin project will always want to do to get you off guard and make you loose your invesed money without playing smart. We need to be careful out there about this type coins

 

[Josemendez]

These are what most shitcoin project will always want to do to get you off guard and make you loose your invesed money without playing smart. We need to be careful out there about this type coins

This is the more reason why you have to make your own research before investing in any coin less you will have to lose a lot of money in the end. Cryptocurrency needs careful measure

 

[Heatman]

Never heard of the term RUG-PULLING. I am a simple crypto enthusiastic who has invested some money in various crypto currencies and trying to hold them for an extended period of time.

Seriously, I'm not going to open into doing something because I thought I prefer doing it because I always have to find out if whatever I'm going to do is going to be beneficial to me or not

 

[GIFTMICHAEL]

That's an easy way to lose money off Cryptocurrency. I just pray never to encounter the issues of rugpull via Cryptocurrency.

 

[Justin]

If you are impatient, you will lose money in crypto currency. becoming impatient means selling as soon as the price begins to drop. You need to calm down when the market is going down.

 

[Jsoliu004]

By trading Crypto, there is no guarantee you will make money,this is a highly volatile market, which, while sharing the characteristics of the stock market, is decentralised, unregulated, subject to manipulation and highly unstable. ... If you are in the market or thinking of entering you may lose everything you invest.

 

[Niftyyem]

People are losing big to such projects that are rug pulled. The points you have highlighted are excellent ones and I will add that even in a project that seems rugpull proof, don't invest a huge part of your portfolio.

 

[tyrim88]

This is a very good insight and i have gotten something from this,very well noted,it is very instructive to do a due deligence on any coin one wants to invest in,and this will go a long way to actually help someone to know whether to proceed or not with any venture.

 

[Setho]

This has actually happened to a lot of my friends before and it has taught us a lesson that we should not just invest our money in any type of coins just because of a quick pump.

 

[Alexandoy]

This is the first time that I have encountered that term rug-pulling. It is like you are standing on the floor over a rug and somebody would pull the rug so you lose balance. However, my question is why would a developer lock the liquidity and disable the transaction of the investors?

 

[Heatman]

If you are impatient, you will lose money in crypto currency. becoming impatient means selling as soon as the price begins to drop. You need to calm down when the market is going down.

Seriously, I have always told so many people who are actually currently new to cryptocurrencies investment to never be in a haste to sell off their cryptocurrency no matter what.

 

[Dowenship]

Episode 1
Episode 2

Many investors have lost money in one way or the other in cryptocurrency but RUG-PULLING seems to be the most common way of losing money.

What is RUG-PULLING ? Rugpull is achieved when the developers of a coin pulls out the liquidity they added to the exchange where the coin is traded. This makes it difficult for the investors to sell their tokens because the liquidty that will process the buy is not available.

How do we know if a project will be rugpulled?

The fact is that it is not easy these days as some of the scammers are now very smart with their operations , however below are few strategies that can help .

1. Check if the liquidty is locked and ownership denounced . If the liquidty is locked , then there is no way the liquidty can be pulled out untill the expiration of the locking period.

2. Check if there are wallets with more than 40% of the total circulating supply . If a wallet has up to 60% of the circulating supply , it is probably the wallet of the developer and he can dump the tokens at once and crash the project.

3. Confirm using Binance scan that the claimed tokens were burned because there are techniques that makes a wallet appear to have less amount of tokens as it actually contains.

4. Do you research before investing in any project.

Dear Op, you just made my day with this information you passed across. But please you said we should check if liquidity is locked and ownership denounced. Please how can we do this...

 

[Josemendez]

Dear Op, you just made my day with this information you passed across. But please you said we should check if liquidity is locked and ownership denounced. Please how can we do this...

You need to use two tool to achieve this , the Binance scan and the poocoin app . These two sites provides information on whether the liquidity is locked or not and other information in the post

 

[Yusuf]

Rug pulling is very bad in the crypto currency exchange Business. This allows others to manipulate the market to their advantage and later on take profit for others who just Join the coin or market to lose money