New research suggests that crypto scams are getting worse. One popular strategy is the token “rug pull,” where malicious actors fake hype over a crypto coin, abandon the project halfway, and steal all the investors’ money.
Sources from ZDNet noted that last year featured record-breaking numbers for cryptocurrency-related theft and fraud, where cybercriminals netted an estimate of $14 billion.
Be warned that these crypto scam strategies continue to worsen, and the rug pull is one of the biggest contributors to their success.
Squid Game Crypto Scam
The SQUID token is one of the best examples of this malicious scam. When enough fans had gotten interested in the coin and it peaked at $2,850, developers’ rug pulled the coin and prevented traders from selling it. The coin crashed 99.99 percent and ended with $0.0007 last year. The scammers stole millions of dollars in the process.
Notably, the pattern primarily used in rug pulls is to generate hype on a crypto coin with a fake value. Then, scammers will steal the money in the money invested in the fake project.
Experts from Check Point Research (CPR) explained the finer details for this scam.
Read Also: Dogecoin, Solana, Cardano Prices Crash in Double Digits! What Happened?
Smart Contract Scams: Rug Pull Strategy
CPR emphasized that rug pull is abusing misconfigurations in the smart contract. This means traders who are unaware of the indicators can be fooled by this strategy.
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