Rug pull is a method implemented by the malicious team or people who are released by the developers with various promises, after collecting the funds of the investors, filling their pockets with token manipulations and running away. Such altcoin scams come in various shapes and sizes. Liquidity fraud is the most typical type of rug pull. The latest rug pull reported by blockchain security firm Certik Alert is the MIC token.
Altcoin fell 86%, $150,000 lost
A recent warning by Certik Alert is on the MIC token whose IDO is held by Legendary_Retro. The altcoin price has lost 85% after the $150 exit from its pools. Legendary_Retro is a BSC based GameFi platform. The MIC token IDO was created by Lengendgame, and the project is considered rug pull, as sales by IDO investors cannot lower the price that much. The following Certik Alert post, posted on March 14, says $150,000 has been mined from MIC token pools and is likely rug stamps:
Over $150,000 was lost from the pools. This caused the MIC price to drop more than 85%, creating high suspicion for a rug pull.
How do I protect myself from rug pull?
The “rug pull” is a disastrous event that can happen in the crypto markets as anonymous, shady projects with NFT avatars run off with crypto investors’ money. Avoiding such projects is just a matter of doing some due diligence before investing. First of all, it can be checked how many matches the project has. If it’s only paired with Ethereum or any other very large crypto project, that’s a good sign that the coin could be a scam.
Additionally, when looking at liquidity pools, keep an eye on the lockdown period. If no liquidity is locked in, it’s safe to say that the liquidity provider has an exit strategy. It should be checked in “Total locked value” or TLV. The fact that the percentage is locked around 80-100% reduces doubts. Next, the project’s website should be checked. Does it look legit or is the site “under construction”? Finally, check with some risk analysis platforms and Blockchain security firms. cryptocoin.com As we have reported, such projects can even infiltrate the Binance stock market.
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