A rug pull is a type of scam where the developers of a project suddenly withdraw all the funds from a liquidity pool or project wallet, leaving investors with worthless tokens. This usually happens in projects that lack transparency or have no established track record.Typically, a new cryptocurrency project will launch, often with sophisticated marketing and community engagement. The developers will promote the token to attract investments. Once they have enough funds, they can “pull the rug” by selling their tokens or taking the liquidity out of the pool.Victims are often left with no recourse, as the developers often disappear or become unreachable. To avoid rug pulls, it’s essential to do thorough research on a project, including assessing the team behind it, their roadmap, and community feedback. Red flags might include anonymous developers, lack of a clear business plan, and promises of guaranteed returns, as these can indicate potential risks.