Exit scam
Crypto scam where project leaders vanish with investors’ funds.
Beginner-friendly explanation
An exit scam is a scam where the creators of a crypto project run away with investors’ money. Usually, they shut everything down: website, social media, platform... without warning. It’s like someone offering you a great deal, taking your money… and disappearing.
Example:
You invest in a new token promising high returns. After a few weeks, the site is down, all messages deleted: the creators did an exit scam.
Intermediate-level insight
An exit scam is a common fraud in ICOs, DEXs, or unregulated DeFi projects. The promoters raise funds with a promising setup (white paper, influencers, marketing), then shut everything down after cashing in. Some exit scams unfold slowly — delays, excuses, token dilution — before the final exit.
Example:
A DeFi protocol gathers $20M in TVL within days. Then, withdrawals are blocked, the contract is altered, and the developers disappear.
Advanced perspective
An exit scam is a fraudulent asset diversion strategy where project founders exploit information asymmetry and lack of regulation. It relies on hype (buzz, FOMO), capital lock-in (vesting, opaque smart contracts), then a sudden or disguised liquidity extraction. Some scams use proxies or social engineering (fake audits, dummy KYC).
Example:
A project promises a revolutionary NFT platform, raises millions in presale with influencer support, then executes a rug pull by altering smart contract permissions to drain funds.
Psychology & Behavior
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