The post Ripple CTO Speaks out on Crypto Rug Pulls: Details appeared on BitcoinEthereumNews.com.

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. In a recent tweet, Ripple CTO David Schwartz has shared his perspective on “rug pulls” in the cryptocurrency space. Schwartz’s recent insights aim to clarify what constitutes a rug pull, a type of crypto scam. Schwartz began by sharing this observation: “I see a lot of people using the term ‘rug’ in contexts where I wouldn’t use the term.” He then explained his understanding of what defines a rug pull. I see a lot of people using the term “rug” in contexts where I wouldn’t use the term. Here’s what I understand constitutes a “rug”: 1) When the founders, devs, or very major players in a token or project sell larger amounts or sell more quickly than people were reasonably led to… — David “JoelKatz” Schwartz (@JoelKatz) January 20, 2025 The Ripple CTO explained that a rug pull occurs when the founders, developers or major players in a token or project sell large amounts or sell more quickly than people were reasonably led to expect. This sudden sell-off may result in a sharp decrease in the token’s value, leaving investors with a loss. Related Another form of rug pull, according to Schwartz, is when founders or developers show dramatically less commitment to a project, effectively abandoning it long before delivering the promised outcomes. This lack of follow-through…

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Filed under: News - @ January 20, 2025 2:21 pm