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Therefore, you should do a basic check on ICO promoters and on the backers of cryptocurrency projects and the kind of connections/followers they have.
However, every other rug pull tracked by Chainalysis in 2021 involved DeFi projects. DeFi transaction volume has grown 912% in 2021, and the incredible returns on decentralized tokens like Shiba Inu have many excited to speculate on DeFi tokens. That last point is crucial - decentralized tokens are meant to be designed in such a way that investors holding governance tokens can vote on things like how assets in the liquidity pool are used, which would make it impossible for the developers to drain the pool’s funds.
This does not occur with the custodial wallets, as the exchanges take certain precautions for ensuring that you always have access to your funds. There is a lower chance of recovering stolen funds when a large sum of money gets stolen quickly. Fraud schemes, in general, promising romance rank No.
1 among all money scams, according to the FTC, with the median amount swindled being $4,400 and the total reaching $1.3 billion.

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