Scam tokens have become a significant threat in the cryptocurrency market. One of the most notorious types of scams is the rug pull, where developers abandon a project and abscond with investors' funds. These projects often promise unusually high returns and use misleading marketing tactics to lure in unsuspecting investors.
To avoid falling victim to these scams, it's essential to do your research and due diligence. Look for projects with transparent development teams, clear roadmaps, and a strong community. Never invest in projects that promise guaranteed returns or use aggressive marketing tactics.
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- Always verify the project's smart contract and audit reports.
- Be cautious of projects with low liquidity or suspicious trading activity.
- Don't invest more than you can afford to lose.
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