How DeFi ‘Rug Pulls’ Are Becoming the Bane of the Industry
As cryptocurrency markets continue their retreat, DeFi tokens are getting hit particularly hard and investors are growing wary of a rising trend of ‘rug pulls’. In essence, a rug pull is similar to a pump and dump. Tokens are artificially inflated by hype and spurious liquidity, only to be sold off or dumped at a The post How DeFi ‘Rug Pulls’ Are Becoming the Bane of the Industry appeared first on Coingape.
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As cryptocurrency markets continue their retreat, DeFi tokens are getting hit particularly hard and investors are growing wary of a rising trend of ‘rug pulls’.
In essence, a rug pull is similar to a pump and dump. Tokens are artificially inflated by hype and spurious liquidity, only to be sold off or dumped at a peak leaving the latecomers out of pocket.
This has left many DeFi tokens with chart patterns that resemble those that were seen by countless altcoins during the 2017/2018 ICO boom. Analysts have even joked that some charts look like Dubai’s iconic Burj Khalifa tower, which is effectively a huge spike in the sky.
Liquidating DeFi Rug Pulls
Popular analyst Josh Rager recently posted how he has just liquidated a large stash of these assets which are now worth a pittance.
Just sold $15k worth of rug pulled assets for less than $20
Using the losses to count against capital gains for tax purposes this year
Something to talk to your accountant about if you got rug pulled too
— Josh Rager
