The crypto community is urged to exercise basic due diligence as rug pulls become increasingly common in recent project launches. Investors are advised to spend at least five minutes investigating the team behind a project, their previous work, and the authenticity of their claims. This includes checking onchain data to verify if the technology matches advertised features and seeking community feedback on the project's credibility.
The rise of anonymous accounts capable of raising significant funds with minimal initial investment has led to frequent scams. The essence of trustless markets is to avoid blind trust, emphasizing the need for investors to use common sense and assess risks, especially when concrete answers about a project's legitimacy are lacking despite the hype.
Call for Due Diligence in Onchain Crypto Amid Rising Rug Pulls
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