Rug Pull in DeFi: The Liquidity Trap

Method: A new DeFi project creates a token, attracts investors to buy and provide liquidity (LP). After collecting enough funds, the development team suddenly withdraws all assets (usually $ETH

ETH
ETH
2,094.75
+0.26%

$BNB BNB/USDT) from the liquidity pool and disappears.

BNB
BNBUSDT
641.99
-0.91%

Consequence: The projectโ€™s token becomes instantly worthless because thereโ€™s no liquidity left to sell, leaving investors with a total loss.

Key Insight: High returns often hide high risksโ€”always research the team, audit reports, and liquidity lock status before investing.

Pro Tip: Avoid chasing hype. Stick to verified projects and monitor liquidity pools regularly.

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#DeFiRisks #CryptoSecurity #RugPullAlert #BlockchainSafety