Cryptocurrency rug pulls are scams where project teams disappear after raising funds from investors, leaving them with worthless tokens.

Rug pulls often occur on decentralized trading platforms and can be executed through social media campaigns, token value manipulation, and the anonymity these platforms provide.

There are two types of rug pulls: hard rug pulls, resulting in sudden losses, and soft rug pulls, happening gradually while creating a false sense of security.

To avoid rug pulls, investors should conduct thorough research on the project's team, technology, goals, and community, engage with the project's community, and be cautious of unrealistic returns, excessive marketing, and pressure to invest quickly.

Some of the biggest crypto rug pulls include OneCoin, Thodex, AnubisDAO, Uranium Finance, and Squid Game Token, which collectively resulted in billions of dollars lost by investors.

Understanding rug pull types, recognizing warning signs, and implementing best investing practices can significantly reduce the risk of falling victim to these scams.