An exit scam occurs when the operators of a cryptocurrency project, such as an initial coin offering (ICO) or a trading platform, abruptly close the business and disappear with investors’ funds. This deception typically happens after attracting a significant amount of investment.In the early stages, these projects may appear legitimate, often using professional marketing and promising high returns. However, once sufficient capital is raised, the creators may extract the funds and shut down all operations, leaving investors with worthless tokens or no recourse to recover their money.Exit scams can be hard to detect beforehand, as scammers often build trust within the community and may use various tactics to maintain a facade of credibility. Victims are left with little or no options, as the anonymity of cryptocurrencies makes tracking the culprits difficult. It’s important for investors to conduct thorough research and due diligence before investing in any cryptocurrency project to minimize the risk of falling victim to such schemes.