Introducing the litter box.
A resource guide to help identify scammers, rug pulls, and other s***.
Bots, rugpulls and scammers have been an increasingly disruptive problem for all ASAs, they prowl the web and crypto-space, picking up airdrops, participating in NFT giveaways, spamming subreddits, manipulating web traffic, and turn people away from the Algorand blockchain.
These scammers are more than just a nuisance, they hinder a growing Algorand ecosystem, suppress ASA prices, and wreak havoc on the projects we’re building. All kittens, doggos and hoomans alike should be able to agree these scammers are a problem.
We at KittenCoin are doing something about it. Learn more about the Litter Box, and Operation Carpet Destroyer, our rugpull offensive.
WHAT'S A RUG PULL & WHAT TO WATCH FOR
Rug pulls and pump and dumps are essentially fake projects that generally try to build excitement and attention to a token, only for the majority owners to pull their stake. They then grab the the investments of the community and typically shut down the project.
While rug pulls can be sophisticated operations, there are sometimes signs of a fake project.
Here's a list of some of the things to watch.
No website or social communities
Creator wallets holds large percentage of the tokens
Unresponsive project team
Deceiving naming practices
Undisclosed but associated wallet addresses
Read this article from FastCompany about the Squid Token rug pull.
Dig deep into it
LET's HELP BURY THAT 💩
There are also several projects on Algorand that are working on automated or community-based methods to help $ALGO users better identify trustworthy projects. We're combining forces for a better Algorand.