There are various scams of Crypto currency where the token as well as Web 3.0 economy. It has innovative projects along with some dubious NFT launches. Here, the level of transparency also believed to be among the core values. It is behind each project that is blockchain based crypto. It is usually Arm with some kind of the belief. Several unsuspecting investors does not also hesitate to the purpose of risk the hard-earned money and is also deceptively for dubious projects.
It also suggested by the data that billions of the dollar worth of wealth of investors. It has been lost for non-transparent projects of blockchain across world.
Identifying the dubious Crypto
In the year 2021, more than $2.8 billion that lost to the rug pulls. The type of scam where the developers disappear with the money of investors subsequent to appearing as building the most legitimate project. As per Chainalysis, the renowned crypto analytics company has almost 90% of complete value that lost to the rug pulls in year 2021. It was mainly because of the centralized crypto exchange known as Thodex. Where CEO simply disappeared after exchange stopped their users from drawing funds.
The Rug pulls are quite common in the NFT. It also known as non-fungible tokens, memecoins as well as DeFi (decentralized finance). The reason is that the kind of hype as well as ease of getting the token list. Here, infamous tokens of Squid Game had also the non-descript team developer that created with the fake identities. The Chainalysys report of crypto says that it is quite simple for where right kind of the technical skills for creating the new DeFI tokens. It also getting them list without any edit in code.
In various legit projects, the developers deliberately make things little transparent and they do not share circulation statistics.
