Even though the DeFi industry continues to attract a lot of liquidity, the number of scams remains alarmingly high. Several of the recently launched projects have gone through a “rug pull”. It seems that scammers are still intent on earning a quick buck in the space.
DeFI Rug Pulls Remains a Problem
Dozens of new DeFi tokens continue to launch every single day, with several of them being added to Uniswap and other platforms every hour.
The vast majority of these tokens are scams or worthless assets that will never amount to anything.
This is extremely evident when looking at the number of tokens launching and losing up to 100% in value right away.
With names such as P0NZI, Avocado, SUZU, and KLIP, it becomes very difficult to determine what is real and which may be a scam waiting to happen.
Not all of the DeFi tokens launched are designed to serve as a rug pull, however, as a fair few of them have legitimate intentions.
A rug pull occurs when liquidity providers unstake their liquidity and cash out their tokens in favor of Ethereum, for example.
Of the newly launched tokens, a fair few of them tend to rise up in value fairly quickly.
It remains an incredibly competitive market, but chasing pumps remains a silly idea, regardless of potential profits.
Keeping tabs on these launches has become a lot easier with the help of AstroTools.