What is a rugpull?

A rug pull is when all of the liquidity is removed from an exchange for a given token. This typically leaves many token holders with a token that does not carry any inherent value. In addition, even the small value the token may carry does not provide any value as there is insufficient liquidity on the exchange to sell the token. These types of planned or unplanned rugpulls by nefarious devs or whales acting poorly have become rampant on the Binance Smart Chain where deploying a contract is fairly simple and inexpensive. Is this type of situation preventable? Yes and No. More details in Part II. 🍪