How a crypto "rug pull" works

Process map by Brian. 10 steps, 1 layer. Tags: crypto, finance, controversy, scams.

1. The founders: Launch a new token with a bold promise
2. The founders: Hype: influencers, memes and "to the moon"
3. Investors: Early buyers pile in
4. The exchange: The price climbs
5. The founders: Are the founders honest?
6. The founders: They build the product
7. The founders: Quietly sell their large holdings or drain the liquidity
8. The exchange: The price collapses
9. Investors: The founders vanish and the website and chat go dark
10. Regulators: Investigations are slow, and borders make them harder

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