Types of Scams

Why It's Important to Learn About Types of Scams When Choosing an Altcoin to Buy

Scam – a fraudulent scheme in which token creators deceive investors or users for personal gain.

Popular types of scams include the following schemes:

1) RUG PULL:

RUG PULL – a type of scam in DeFi where the token creator withdraws all liquidity from the pool, making the token illiquid, i.e., you cannot trade it.

2) HONEYPOT:

HONEYPOT – a type of scam in DeFi where the developer prevents investors from selling tokens. It is often used in conjunction with RUG PULL.

3) PUMP and DUMP:

Pump and dump – a type of scam in DeFi where false hype is created around a coin.