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Crypto Grizz Altcoins

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

Rug Pulls In Crypto Altcoins

Avoid Crypto Scams – 7 Signs of a Rug Pull!

45,617 views
Aug 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

00:00
boys it almost happened i almost lost it
00:02
all in a crypto scam not really though i
00:04
mentioned this briefly in the video that
00:06
we posted what is a rug pool but i
00:08
wanted to dive a little deeper into it
00:10
before we start this story i want you to
00:11
know that we don’t participate in many
00:13
scams this was actually for educational
00:15
purposes only to understand how deegen
00:18
yield farms really work by the way if
00:19
you don’t know what a djinn yield farm
00:21
is go check out our video on it the day
00:23
was march 3rd and i had just tossed a
00:25
few hundred dollars into a dj yield farm
00:27
to see if it was going to pump and dump
00:28
and i was kind of curious if the 42 000
00:31
apr was actually real now the project
00:33
looked promising and it had all the
00:34
characteristics i had looked for it had
00:36
locked liquidity the social media page
00:38
was blowing up and the white paper said
00:40
it was solving a bunch of problems but
00:42
sure enough it was just another dredged
00:44
rug pool i personally was lucky enough
00:46
to get all my funds out after i realized
00:48
as soon as it launched the code made it
00:50
so that when you tried to harvest your
00:51
interest the harvested tokens were sent
00:53
to the developer’s wallet address now i
00:56
got out but the people who waited an
00:57
extra five minutes after the launch
00:59
weren’t so lucky welcome to whiteboard
01:01
crypto the number one youtube channel
01:02
for crypto education and here we explain
01:05
topics of the cryptocurrency world using
01:07
analogies stories and examples so that
01:09
you can easily understand them in this
01:11
video we are going to explain seven
01:13
signs that you can look for to avoid a
01:15
rug pool let’s dig right in without
01:17
skipping a bunch of formalities number
01:19
one similar layouts now this might not
01:21
be a definitive sign but it’s a good
01:23
start have you ever noticed that all the
01:25
yield farms have pretty much the same
01:27
layout this is because they are easily
01:29
just reusing the original code from the
01:31
goose swap dj nild farm to host their
01:33
site now why this is important is
01:35
because you can tell if something is a
01:37
scam by the amount of time that someone
01:38
took developing it for example did they
01:40
just spend 10 minutes outsourcing some
01:42
new images or using google images or did
01:44
they spend a couple weeks coming up with
01:46
a brand new design to host their new
01:47
company that will help further crypto
01:49
technologies some platforms take months
01:51
to build before they launch while dj in
01:53
yield forms can literally be set up in
01:55
minutes number two is liquidity so
01:57
checking liquidity is actually only
01:59
something you can do if you’re investing
02:01
in a specific token not an actual
02:03
project like ave or curve or defense
02:05
however checking the amount of liquidity
02:07
is a very powerful indicator of how
02:09
likely a token is to be a scam for
02:11
example any token with ten thousand
02:13
dollars in liquidity can easily be
02:15
manipulated to double or triple or
02:16
quadruple the price but it also means
02:19
the developer doesn’t have much money to
02:21
invest in the token on the other hand a
02:23
token like uni swap actually has around
02:25
34 million dollars in liquidity and if
02:27
you’re new around here liquidity refers
02:29
to the amount of value in tokens that
02:31
can actually be traded check out our
02:32
video on how a liquidity pool works and
02:34
what the automated market maker
02:36
algorithms are if you want to be a
02:37
liquidity expert by only watching two
02:39
videos in fact they’re actually our best
02:41
videos and probably because they’re so
02:43
awesome number three is social authority
02:45
or social proof remember how your
02:47
favorite influencer telling you that
02:49
honeybee or cummies was the next big
02:50
project and that if you bought some that
02:52
they would match it well this is another
02:54
big sign that a rug pull is evident if
02:56
you notice large influencers promoting
02:58
projects that they have no part in good
03:00
projects will advertise themselves they
03:02
won’t reach out to influencers
03:04
especially generic a-list celebrities
03:06
promoting a coin or especially a token
03:08
that isn’t bitcoin or ethereum most
03:10
a-list celebrities aren’t going to look
03:12
at the code of how that coin works let
03:14
alone even visit the website and read
03:15
the white paper or the road map of the
03:17
project you don’t let these people pick
03:19
your job or your future stocks or your
03:20
romantic partner so don’t let them pick
03:22
your coins or tokens either speaking of
03:24
white papers and road maps number four
03:26
is white paper do you know how when you
03:28
go to buy a course or a product that
03:30
everything on that specific sales page
03:32
has been psychologically vetted to make
03:34
sure it’s the best to get an emotional
03:36
buying response out of you now i know
03:38
this for a fact because i personally run
03:39
another youtube channel that sells
03:41
courses and these pages can take months
03:44
to perfect but when they do even i get
03:46
giddy reading through them well this is
03:48
the same as a white paper good projects
03:50
have solid white papers will they give
03:52
you stats diagrams and the problems
03:54
they’re solving if the white paper is
03:56
less than 20 pages it’s not a white
03:58
paper it’s a sales page designed to get
04:00
you to invest your money maybe that’s
04:01
what you’re into though next up number
04:03
five is looking deeper into the code so
04:05
moving on one of the best ways to avoid
04:07
a rug pool is simply to look at the code
04:09
of the smart contract or the token code
04:11
now there’s many ways to do this but the
04:13
best way is to go to your favorite
04:15
blockchain explorer and use the contract
04:17
inspecting tool to heck what am i saying
04:19
this is supposed to be a simple
04:21
explanation of how to spot a rug pool
04:23
you guys aren’t going to do any of that
04:24
lucky for you i’ve got the hookup first
04:26
you want to go check out the project on
04:28
rug doctor they have a website dedicated
04:30
to actually reviewing the smart contract
04:32
code and identifying common rug pull
04:34
techniques they then use their website
04:36
rugdoc.io to inform the visitors of
04:38
these scams secondly you’ll want to
04:40
bookmark tokensniffer.com tokensniffer
04:43
is an amazing website that basically
04:45
compares a ton of tokens and how similar
04:47
they are if the token is 100 or even 80
04:51
similar to another token well it’s not
04:53
unique and that’s a huge red flag for
04:55
rug pools why create a unique token when
04:57
you can just copy and paste some code
04:59
and scam some djinns number six is to
05:01
check the wallets here’s some advice
05:03
that you might actually use a blockchain
05:05
explorer for most explorers for the
05:07
ethereum or polygon or binance smart
05:09
chains will let you look at all the
05:11
tokens out there pop in your token
05:13
address and you can actually see a list
05:15
of all the top token holders who hold
05:17
that token if more than 20 of all tokens
05:20
are held by one wallet or even if the
05:22
top 10 wallets hold more than 20
05:24
combined you could be getting rugged the
05:26
idea here is that one person could sell
05:28
all of their tokens which is a large
05:30
majority of the tokens and crash the
05:32
price this is actually probably the
05:34
easiest way to spot a rug pull lastly
05:36
for number 7 we have a metric called
05:38
total value locked in terms of investing
05:40
in a project and not a specific coin you
05:42
can actually check out a metric that is
05:44
called tvl or total value locked tvl is
05:47
the total dollar amount of coins and
05:49
tokens invested into the project for
05:51
example ave which is a well-known blue
05:54
chip borrowing and lending platform has
05:56
over 20 billion dollars invested in it
05:58
compare that to a djinn yield form i saw
06:00
on a subreddit crypto moonshots that
06:02
recently launched with around a hundred
06:04
thousand dollars total value locked a
06:05
hundred thousand dollars is still a lot
06:07
of money but nothing in comparison to
06:09
the 20 billion dollars ave has or the 10
06:11
billion dollars that curb finance have
06:13
so lastly we want to go over what to do
06:16
if you’re involved in one well the first
06:17
thing you should do is remove your
06:19
investment if you notice that it’s going
06:20
to be rug pulled and this can be
06:22
trickier sometimes there are time locks
06:23
where you can’t withdraw within 48 hours
06:26
of your initial opening secondly you
06:27
should probably tell everyone else about
06:29
the rug pool maybe you can share via the
06:31
discord or the telegram thirdly you
06:33
should reach out to the rug doctor and
06:34
maybe they can add the token to their
06:36
list lastly you should subscribe because
06:38
if you watch this entire video chances
06:40
are that you actually avoided a rug pull
06:42
in the first place at least that’s our
06:43
hope subscribing goes a long way in
06:45
supporting us for creating this helpful
06:47
free video which actually took a lot of
06:49
work to create and even produce since we
06:51
aren’t technically monetized yet we keep
06:53
saying that in videos but we promise
06:55
once we are monetized you’ll know
06:56
because there’ll be a bit more
06:58
excitement in our voice and probably a
07:00
lot more uploads so to summarize this
07:02
video in an out of order fashion number
07:04
one invest in projects that already have
07:06
a bunch of money in them number two do
07:08
your due diligence by checking popular
07:10
rug pull lists and checking wallet
07:12
amounts number three join a projects
07:14
community and ask specific questions
07:16
about their white paper number four
07:18
reach out to us and we would love to
07:19
check out the project for free you can
07:21
join our discord for free with the link
07:23
below and as always thank you guys for
07:25
watching this video we hope that you
07:26
enjoyed it we really hope that you’ve
07:27
learned something and most of all we
07:29
hope to save you from a rug pool we’ll
07:31
see you in the next video