Glossary
Rug Pull
A scam where developers drain liquidity or dump their own tokens, leaving buyers with nothing.
A rug pull is when a project's creators drain the liquidity pool or dump their own holdings, leaving buyers with worthless tokens. It is the most common scam in low-cap crypto.
Warning signs are consistent: anonymous teams, locked liquidity that is not actually locked, minting rights retained, and marketing that promises returns. If you cannot explain how the project makes money, assume it makes money from you.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.