# How a crypto "rug pull" works

> A process map exported from forks.world (https://forks.world). Author: Brian. Source: https://forks.world/p/cmv0kptqz004njn06h4y9ek2p
> It describes who does what, in what order, and with which technology. Read the plain-language sections first; the JSON at the end is the exact, complete data.

## Summary

- 10 steps across 1 layer
- Persona: The founders, Investors, Regulators
- Technology / systems: The exchange

## Pain points

Where this process hurts, worst first:

- **The price collapses** (How a crypto "rug pull" works; critical): Investors can lose almost everything

## How to read this file

- A process is made of **layers**. The main layer is the top level; any step of kind `subprocess` opens a detail layer with its own lanes and steps.
- **Lanes** are either persona (people/roles) or technology (systems). Each step belongs to one lane; `using` lists tools a person uses for that step.
- Step kinds: `start`, `task`, `decision` (its arrows carry the answer as a label), `subprocess`, `end`.

## How a crypto "rug pull" works

Lanes:
- The founders: person / role (id `dev`)
- Investors: person / role (id `crowd`)
- The exchange: technology / system (id `market`)
- Regulators: person / role (id `reg`)

Steps, in the order they run:

1. **Launch a new token with a bold promise** [start; The founders; id `r1`]
   - then Hype: influencers, memes and "to the moon"
2. **Hype: influencers, memes and "to the moon"** [task; The founders; id `r2`]
   - then Early buyers pile in
3. **Early buyers pile in** [task; Investors; id `r3`]
   - then The price climbs
4. **The price climbs** [task; The exchange; id `r4`]
   - then Are the founders honest?
5. **Are the founders honest?** [decision; The founders; id `r5`]
   - if "Yes" go to They build the product; if "No" go to Quietly sell their large holdings or drain the liquidity
6. **They build the product** [end; The founders; id `r6`]
7. **Quietly sell their large holdings or drain the liquidity** [task; The founders; id `r7`]
   - then The price collapses
8. **The price collapses** [task; The exchange; id `r8`] ⚠ PAIN POINT (critical): Investors can lose almost everything
   - then The founders vanish and the website and chat go dark
9. **The founders vanish and the website and chat go dark** [task; Investors; id `r9`]
   - then Investigations are slow, and borders make them harder
10. **Investigations are slow, and borders make them harder** [end; Regulators; id `r10`]

```mermaid
flowchart LR
  subgraph l_dev["The founders"]
    n_r1(["Launch a new token with a bold promise"])
    n_r2["Hype: influencers, memes and 'to the moon'"]
    n_r5{"Are the founders honest?"}
    n_r6(["They build the product"])
    n_r7["Quietly sell their large holdings or drain the liquidity"]
  end
  subgraph l_crowd["Investors"]
    n_r3["Early buyers pile in"]
    n_r9["The founders vanish and the website and chat go dark"]
  end
  subgraph l_market["The exchange"]
    n_r4["The price climbs"]
    n_r8["The price collapses"]
  end
  subgraph l_reg["Regulators"]
    n_r10(["Investigations are slow, and borders make them harder"])
  end
  n_r1 --> n_r2
  n_r2 --> n_r3
  n_r3 --> n_r4
  n_r4 --> n_r5
  n_r5 -->|"Yes"| n_r6
  n_r5 -->|"No"| n_r7
  n_r7 --> n_r8
  n_r8 --> n_r9
  n_r9 --> n_r10
```

## Full data (JSON)

```json
{
  "title": "How a crypto \"rug pull\" works",
  "maps": {
    "m_root": {
      "id": "m_root",
      "lanes": [
        {
          "id": "dev",
          "name": "The founders",
          "type": "person"
        },
        {
          "id": "crowd",
          "name": "Investors",
          "type": "person"
        },
        {
          "id": "market",
          "name": "The exchange",
          "type": "system"
        },
        {
          "id": "reg",
          "name": "Regulators",
          "type": "person"
        }
      ],
      "steps": [
        {
          "id": "r1",
          "kind": "start",
          "lane": "dev",
          "next": [
            {
              "to": "r2"
            }
          ],
          "uses": [],
          "label": "Launch a new token with a bold promise"
        },
        {
          "id": "r2",
          "kind": "task",
          "lane": "dev",
          "next": [
            {
              "to": "r3"
            }
          ],
          "uses": [],
          "label": "Hype: influencers, memes and \"to the moon\""
        },
        {
          "id": "r3",
          "kind": "task",
          "lane": "crowd",
          "next": [
            {
              "to": "r4"
            }
          ],
          "uses": [],
          "label": "Early buyers pile in"
        },
        {
          "id": "r4",
          "kind": "task",
          "lane": "market",
          "next": [
            {
              "to": "r5"
            }
          ],
          "uses": [],
          "label": "The price climbs"
        },
        {
          "id": "r5",
          "kind": "decision",
          "lane": "dev",
          "next": [
            {
              "to": "r6",
              "label": "Yes"
            },
            {
              "to": "r7",
              "label": "No"
            }
          ],
          "uses": [],
          "label": "Are the founders honest?"
        },
        {
          "id": "r6",
          "kind": "end",
          "lane": "dev",
          "next": [],
          "uses": [],
          "label": "They build the product"
        },
        {
          "id": "r7",
          "kind": "task",
          "lane": "dev",
          "next": [
            {
              "to": "r8"
            }
          ],
          "uses": [],
          "label": "Quietly sell their large holdings or drain the liquidity"
        },
        {
          "id": "r8",
          "kind": "task",
          "lane": "market",
          "next": [
            {
              "to": "r9"
            }
          ],
          "pain": {
            "note": "Investors can lose almost everything",
            "level": 3
          },
          "uses": [],
          "label": "The price collapses"
        },
        {
          "id": "r9",
          "kind": "task",
          "lane": "crowd",
          "next": [
            {
              "to": "r10"
            }
          ],
          "uses": [],
          "label": "The founders vanish and the website and chat go dark"
        },
        {
          "id": "r10",
          "kind": "end",
          "lane": "reg",
          "next": [],
          "uses": [],
          "label": "Investigations are slow, and borders make them harder"
        }
      ],
      "title": "How a crypto \"rug pull\" works",
      "parent": null
    }
  }
}
```