Simple mistakes that risk your crypto investment
Investing or trading in cryptocurrency of whatever kind is a risky affair. It does not…
If you are going to buy cryptocurrency, then this can be done in different ways. One of the safest ways to do this is through a cryptocurrency exchange. And the best thing is, of course, that the relevant cryptocurrency exchange is recognized.
One crypto exchange that is recognized is Coinbase. This is one of the crypto exchanges that Norwegians use.
It was recently announced that Coinbase has made some changes to its platform. These changes come as a result of the danger of rye pulls. The changes we are referring to are the removal of some selected crypto links.
At first glance, rye pull can be a slightly strange concept. But what exactly is a rye pull? Rug pull is obviously an English term that can be translated into Norwegian and «carpet cover». It is a term that refers to getting the blanket pulled away under the legs.
This is one of the concepts that is very relevant in connection with cryptocurrency. If you see this term somewhere in connection with it, then you should turn to another player, for a rug pull will not be beneficial to you at all.
A rug pull means that the culprits pull the blanket you are standing on under your legs. In connection with cryptocurrency, this indicates that the result will not be as you had imagined. Instead of a good return, you are left with nothing, because the culprits run off with the money to everyone who has invested.
With that as a starting point, a rye pull can in a sense be described as a form of crypto fraud.
The team behind Coinbase was notified by Reuters that it was some of the backers of the crypto links they promoted who planned to carry out so-called rug pulls. Coinbase reacted immediately, and therefore decided to remove the relevant crypto links.
A total of three crypto links were removed from Coinbase’s platform:
In Coinbase’s terms and conditions, you can read that the information on their website is not specific investment advice and that they make reservations about any errors. This means that Coinbase has no responsibility for any of their crypto links not having pure flour in the bag.
Nevertheless, Coinbase is concerned about security, and although this is something that is generated automatically on their websites, they are constantly working to improve their security network.
When Coinbase decides to remove one or more crypto links from its platform, it causes the people who have invested in the relevant cryptocurrencies, ie the investors, to lose all the money they invested in the project.
It is of course very awkward, but still it is not difficult to understand why Coinbase acted as they did. There was an obvious danger of rye pulls, and therefore there is reason to believe that this is what would be the end of it all anyway.
If Coinbase had left the crypto links intact, investors would still have lost their investments.
A good explanation of what rug pull within crypto is: