Too Long; Didn't Read
Rug pulls are a lucrative fraud in which developers create new crypto tokens and market them to investors to increase their value and overall liquidity. They then drain the funding pool and crash the token's value to zero before disappearing into thin air and vanishing with the cash. Rug pulls were responsible for more than US$2.8 billion in unlawful activities in 2021, close to an all-time high and up 81 percent from 2020, according to the blockchain data tracker system, Chainalaysis. Smart contracts codes are the backbone that pillared crypto projects: crypto, DeFi, dApps, or NFT. Knowing how to read smart contracts is a must-have skill for anyone interested in investing in crypto projects.