What Is an Exit Scam?

An exit scam or rug pull is a scheme where project creators launch a token, attract investments, and then disappear with investors' money.

How Exit Scammers Operate

Scammers create tokens (often ERC) with hidden backdoors that allow them to mint additional tokens undetected. These new tokens are used to drain liquidity pools, leaving investors with worthless assets

Red Flags to Recognize:

All-Green Charts: Only buys and no sells can indicate manipulation.

Hidden Backdoor: Contracts with hidden code or closed-source structures are risky.

Aggressive Promotions: Tokens heavily promoted on social media often aim to mislead.

How to Protect Yourself:

Verify contracts through reliable audits.

Avoid overly promoted tokens with vague information.

Analyze transaction histories for unusual fee mechanisms.