Soft Rug: a subtle way to defraud investors.

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Everyone is witnessing how the crypto industry is diversifying and growing enormously, be it DEX, DeFi, dapps, or any other financial tool that helps to attract more and more people. But just as people come interested in a new form of investment, so do fraudsters capable of investing a thousand and one tricks to plague this innovative ecosystem and get their hands on people's money.

One of the most famous tricks used at the moment is called RugPull, and it works when developers withdraw liquidity from the funds or vaults of decentralized exchanges and disappear with the funds. The most famous rug pull at the moment is iron finance, a defi based on polygon where 2 billion dollars were lost and where the famous crypto investor mark Cuban also lost a lot of money.

But as users learn quickly to avoid these fraudulent projects, scams also evolve becoming more undetectable, for example, there is a growing tendency to Soft rugs A new way to scam investors very similar to the previous one but with some particular characteristics.

The term soft rug means a simulated scam and occurs when the founders of a project sell their tokens in disguise and when they have achieved their goal they abandon the company and cut off communication with investors.

And although soft rug can be confused with rug pul, this scam strategy is more difficult to discover since the developers themselves constantly strive to generate strong trust and a false sense of security among investors through advertising or constant contact, when at the same time they are trying to disguise that they are getting rid of their tokens, perhaps by small or constant sales so that the token market is not affected and no one notices.

Seeing how this new way of scamming works, we realize that many projects that are now emerging are doing this. And it is not only about defi or yield farming.
farming, since in the very popular shitcoins that promise to make you rich quick and get people to invest money and when they have to get mid-market capitalizations they get rid of the tokens they have when they have achieved a good price.

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Keep your eyes open

Recently it has become news that this new method of scamming has already occurred in very large projects, for example, PolyWhales, where the developers are accused of having liquidated the 5 million tokens that were in the treasury and cutting off communication with investors, causing the price to fall to $0.25.

So the recommendation I can give you is to be very attentive to the projects you want to invest in because if you do not pay attention to the smallest details you could lose all your money, that's why again and again in leofinance is advised to make a thorough DYOR before making financial decisions.

My mother used to say to me: "Every day there is an idiot on the street and someone who takes advantage of it".

So don't be that idiot who goes out and believes everything he sees, research very well before making financial decisions so you don't fall victim to some scam strategy, whatever it is called.

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