What it is:
Rug pulls come in different forms, but the overarching theme is that they are all investment scams. Pump and dump schemes, team exits, liquidity pulls, and limiting sell orders are intended to defraud you and take your funds. Notable rug pulls include the Squid Game token and OneCoin.   

Rug pulls can be hard to spot. They can be elaborate scams that pull in people you trust, making it easier to pull you in as well. The offers can also be very enticing and promising. Scammers are relying on your fear of missing out to take advantage of you.

How to avoid it:

• Research is the key to avoiding rug pulls. Lack of transparency on any aspect of the project and a lack of community are both warning signs
• Only invest in projects that have third-party security audits
• Don’t buy into the hype. Slow down, do research, and make smart choices