DeFi & Yield
What is a DeFi rug pull and how do you spot one?
A DeFi rug pull is a scam where a project's creators attract deposits and then drain the funds or abandon the project, leaving holders with worthless tokens. Common warning signs include anonymous teams with no track record, no independent audit, code that lets developers withdraw the liquidity pool, unlocked founder tokens, and promises of unusually high returns. For example, a token might surge on hype before insiders sell everything and disappear. No single check guarantees safety, but absent fundamentals and concentrated control are clear red flags. This is exactly why we favour documented methodology over hype at Qatobit. Explore our research.
Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.
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