Does 100% liquidity burn and contract renouncement stop investors from being rug pulled on crypto?
Does 100% liquidity burn and contract renouncement stop investors from being rug pulled on crypto?
Let me preface that I am very much a beginner investor in crypto, and if you can guess, my attention is really only on memecoins. Not really interested in the other things that are backing actual physical projects, etc.
That being said, a few of the coins I’m interested in really seem to boast about having liquidity burnt and their contracts renounced as big selling points. Now, I’ve done some very, very brief research on these topics but really wanted to ask here and get a decent explanation on if these are just buzzwords, or what exactly does this mean?
And if these are good, even great things for the security of investors, are they “bulletproof” when it comes to a rug pull? I assume if everyone sells, then essentially yes, but can one person, or a group of people orchestrate a rug pull even with all liquidity burnt and a contract renouncement? Or is there still always hope that a community can unsink the ship if they believe in it enough?
People wouldn’t be making and participating in so many different shit coins if there wasn’t money to be made.
It’s honestly ridiculous to think a “community” of holders cares about the overall health of a currency to “un sink the ship” over their own financial interests. Once the ship starts sinking, people cram out the emergency off ramp exit.
And because it’s a closed system that doesn’t generate value of it’s own, if you walk away with extra money that’s because it came directly from someone else who lost the game.