@h5hf
"Rug pulls" occur when the creators of a cryptocurrency project suddenly withdraw all funds from liquidity pools, leaving investors with worthless tokens. This causes immediate financial losses and significantly damages trust in the project. Such incidents make it harder for legitimate new projects to gain traction, as investors become more cautious and skeptical about the project's authenticity. The reputation of the crypto market as a whole suffers, as rug pulls contribute to perceptions of fraud and instability. To rebuild credibility, new projects need to implement transparency, secure audits, and proper community engagement.
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