Alarming: Study Reveals 99% of Crypto Traders Unable to Execute Basic Rug Pull
99% of crypto traders lack skills for effective rug pulls.
A report from the Financial Action Task Force uncovered a vulnerability within the cryptocurrency market: an astonishing 99% of crypto traders lack the fundamental skill needed to successfully orchestrate a rug pull.
This widespread ineptitude, the task force warns, severely undermines the integrity of the digital asset space.
"Our findings show a systemic failure in educating crypto market participants," said FATF President Marcus Pleyer at a press conference.
"The inability of a vast majority to create a crypto token project and then abruptly withdraw all the funds from its liquidity pools poses a considerable risk to the sophisticated functioning of DeFi protocols."
The study analyzed discussions across forums like Reddit's r/CryptoCurrency and Telegram trading groups, revealing a profound lack of understanding essential exit scam methodologies.
Only one in about 300 traders demonstrated a rudimentary grasp of concepts like decentralized exchange vulnerabilities for a well-executed exit strategy, according to the study.
"I bought some Hawk Tuah [tokens] expecting massive gains," admitted one anonymous trader in a forum post. "But the developers just left."
"I didn't even know that was a choice. Where's the tutorial for that?"
Experts at the International Monetary Fund (IMF) have weighed in on the report's implications. "This lack of skill in exploiting smart contracts leads to market inefficiencies," cautioned Gita Gopinath, the IMF's first deputy managing director.
"A healthy crypto ecosystem requires some level of strategic liquidity redistribution, which is only possible if more people know how to keep administrative keys in a crypto scam."
Organizations like the European Securities and Markets Authority are considering implementing mandatory workshops that teach advanced rug pull tactics for registered traders. Proposals include modules on optimizing backdoor smart contracts and mastering the art of gradually disappearing from the internet.
Cryptocurrency exchanges like Binance and Coinbase have yet to issue official statements on the report.
But sources suggest internal discussions are underway about hosting courses that offer fraudulent strategies for novice investors on their platforms.
At press time, several people in India who bought altcoins face losses after the tokens' price abruptly dropped within a day, showing the risks for those unfamiliar with how to profit from such a scam. ■
