Rug Pulls In Crypto Altcoins
How To Spot And Avoid Altcoin Rug Pulls
“Rug Pulls” are important in Crypto Altcoin investing as it’s a pitfall to watch out for
Avoid Crypto Scams – 7 Signs of a Rug Pull!
45,617 viewsAug 20, 2021
84K subscribers
In this video, you will learn about the 7 signs of a rug pull. A Rug Pull is a type of crypto scam where the developer of a project or coin runs away with investor’s money. 1) Has a common theme or layout 2) Low Liquidity in the project’s coin 3) Strange or No Social Authority 4) Broad, Salesy, non-techy Whitepaper 5) Code Issues: Use RugDoc and TokenSniffer 6) Whales 7) Low Total Value Locked Join our exclusive discord community: https://discord.gg/D7hGbB5AuH Explore More Whiteboard Crypto: Facebook: @whiteboardcrypto Instagram: @whitreboardcryptoteam Website: https://whiteboardcrypto.com
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FULL VIDEO TRANSCRIPT
00:00boys it almost happened i almost lost it00:02all in a crypto scam not really though i00:04mentioned this briefly in the video that00:06we posted what is a rug pool but i00:08wanted to dive a little deeper into it00:10before we start this story i want you to00:11know that we don’t participate in many00:13scams this was actually for educational00:15purposes only to understand how deegen00:18yield farms really work by the way if00:19you don’t know what a djinn yield farm00:21is go check out our video on it the day00:23was march 3rd and i had just tossed a00:25few hundred dollars into a dj yield farm00:27to see if it was going to pump and dump00:28and i was kind of curious if the 42 00000:31apr was actually real now the project00:33looked promising and it had all the00:34characteristics i had looked for it had00:36locked liquidity the social media page00:38was blowing up and the white paper said00:40it was solving a bunch of problems but00:42sure enough it was just another dredged00:44rug pool i personally was lucky enough00:46to get all my funds out after i realized00:48as soon as it launched the code made it00:50so that when you tried to harvest your00:51interest the harvested tokens were sent00:53to the developer’s wallet address now i00:56got out but the people who waited an00:57extra five minutes after the launch00:59weren’t so lucky welcome to whiteboard01:01crypto the number one youtube channel01:02for crypto education and here we explain01:05topics of the cryptocurrency world using01:07analogies stories and examples so that01:09you can easily understand them in this01:11video we are going to explain seven01:13signs that you can look for to avoid a01:15rug pool let’s dig right in without01:17skipping a bunch of formalities number01:19one similar layouts now this might not01:21be a definitive sign but it’s a good01:23start have you ever noticed that all the01:25yield farms have pretty much the same01:27layout this is because they are easily01:29just reusing the original code from the01:31goose swap dj nild farm to host their01:33site now why this is important is01:35because you can tell if something is a01:37scam by the amount of time that someone01:38took developing it for example did they01:40just spend 10 minutes outsourcing some01:42new images or using google images or did01:44they spend a couple weeks coming up with01:46a brand new design to host their new01:47company that will help further crypto01:49technologies some platforms take months01:51to build before they launch while dj in01:53yield forms can literally be set up in01:55minutes number two is liquidity so01:57checking liquidity is actually only01:59something you can do if you’re investing02:01in a specific token not an actual02:03project like ave or curve or defense02:05however checking the amount of liquidity02:07is a very powerful indicator of how02:09likely a token is to be a scam for02:11example any token with ten thousand02:13dollars in liquidity can easily be02:15manipulated to double or triple or02:16quadruple the price but it also means02:19the developer doesn’t have much money to02:21invest in the token on the other hand a02:23token like uni swap actually has around02:2534 million dollars in liquidity and if02:27you’re new around here liquidity refers02:29to the amount of value in tokens that02:31can actually be traded check out our02:32video on how a liquidity pool works and02:34what the automated market maker02:36algorithms are if you want to be a02:37liquidity expert by only watching two02:39videos in fact they’re actually our best02:41videos and probably because they’re so02:43awesome number three is social authority02:45or social proof remember how your02:47favorite influencer telling you that02:49honeybee or cummies was the next big02:50project and that if you bought some that02:52they would match it well this is another02:54big sign that a rug pull is evident if02:56you notice large influencers promoting02:58projects that they have no part in good03:00projects will advertise themselves they03:02won’t reach out to influencers03:04especially generic a-list celebrities03:06promoting a coin or especially a token03:08that isn’t bitcoin or ethereum most03:10a-list celebrities aren’t going to look03:12at the code of how that coin works let03:14alone even visit the website and read03:15the white paper or the road map of the03:17project you don’t let these people pick03:19your job or your future stocks or your03:20romantic partner so don’t let them pick03:22your coins or tokens either speaking of03:24white papers and road maps number four03:26is white paper do you know how when you03:28go to buy a course or a product that03:30everything on that specific sales page03:32has been psychologically vetted to make03:34sure it’s the best to get an emotional03:36buying response out of you now i know03:38this for a fact because i personally run03:39another youtube channel that sells03:41courses and these pages can take months03:44to perfect but when they do even i get03:46giddy reading through them well this is03:48the same as a white paper good projects03:50have solid white papers will they give03:52you stats diagrams and the problems03:54they’re solving if the white paper is03:56less than 20 pages it’s not a white03:58paper it’s a sales page designed to get04:00you to invest your money maybe that’s04:01what you’re into though next up number04:03five is looking deeper into the code so04:05moving on one of the best ways to avoid04:07a rug pool is simply to look at the code04:09of the smart contract or the token code04:11now there’s many ways to do this but the04:13best way is to go to your favorite04:15blockchain explorer and use the contract04:17inspecting tool to heck what am i saying04:19this is supposed to be a simple04:21explanation of how to spot a rug pool04:23you guys aren’t going to do any of that04:24lucky for you i’ve got the hookup first04:26you want to go check out the project on04:28rug doctor they have a website dedicated04:30to actually reviewing the smart contract04:32code and identifying common rug pull04:34techniques they then use their website04:36rugdoc.io to inform the visitors of04:38these scams secondly you’ll want to04:40bookmark tokensniffer.com tokensniffer04:43is an amazing website that basically04:45compares a ton of tokens and how similar04:47they are if the token is 100 or even 8004:51similar to another token well it’s not04:53unique and that’s a huge red flag for04:55rug pools why create a unique token when04:57you can just copy and paste some code04:59and scam some djinns number six is to05:01check the wallets here’s some advice05:03that you might actually use a blockchain05:05explorer for most explorers for the05:07ethereum or polygon or binance smart05:09chains will let you look at all the05:11tokens out there pop in your token05:13address and you can actually see a list05:15of all the top token holders who hold05:17that token if more than 20 of all tokens05:20are held by one wallet or even if the05:22top 10 wallets hold more than 2005:24combined you could be getting rugged the05:26idea here is that one person could sell05:28all of their tokens which is a large05:30majority of the tokens and crash the05:32price this is actually probably the05:34easiest way to spot a rug pull lastly05:36for number 7 we have a metric called05:38total value locked in terms of investing05:40in a project and not a specific coin you05:42can actually check out a metric that is05:44called tvl or total value locked tvl is05:47the total dollar amount of coins and05:49tokens invested into the project for05:51example ave which is a well-known blue05:54chip borrowing and lending platform has05:56over 20 billion dollars invested in it05:58compare that to a djinn yield form i saw06:00on a subreddit crypto moonshots that06:02recently launched with around a hundred06:04thousand dollars total value locked a06:05hundred thousand dollars is still a lot06:07of money but nothing in comparison to06:09the 20 billion dollars ave has or the 1006:11billion dollars that curb finance have06:13so lastly we want to go over what to do06:16if you’re involved in one well the first06:17thing you should do is remove your06:19investment if you notice that it’s going06:20to be rug pulled and this can be06:22trickier sometimes there are time locks06:23where you can’t withdraw within 48 hours06:26of your initial opening secondly you06:27should probably tell everyone else about06:29the rug pool maybe you can share via the06:31discord or the telegram thirdly you06:33should reach out to the rug doctor and06:34maybe they can add the token to their06:36list lastly you should subscribe because06:38if you watch this entire video chances06:40are that you actually avoided a rug pull06:42in the first place at least that’s our06:43hope subscribing goes a long way in06:45supporting us for creating this helpful06:47free video which actually took a lot of06:49work to create and even produce since we06:51aren’t technically monetized yet we keep06:53saying that in videos but we promise06:55once we are monetized you’ll know06:56because there’ll be a bit more06:58excitement in our voice and probably a07:00lot more uploads so to summarize this07:02video in an out of order fashion number07:04one invest in projects that already have07:06a bunch of money in them number two do07:08your due diligence by checking popular07:10rug pull lists and checking wallet07:12amounts number three join a projects07:14community and ask specific questions07:16about their white paper number four07:18reach out to us and we would love to07:19check out the project for free you can07:21join our discord for free with the link07:23below and as always thank you guys for07:25watching this video we hope that you07:26enjoyed it we really hope that you’ve07:27learned something and most of all we07:29hope to save you from a rug pool we’ll07:31see you in the next video 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