Exit scams are peculiar scams where the cryptocurrency projects simply disappear from the market with investors’ money. Often exit scams are very difficult to spot but not impossible. The exit scam works in a very simple manner.
At first, the project was hyped with a promising concept, to get attention and raise money from investors. Oftentimes, the promises include going to the Moon. Once sufficient funds are collected, it stays a while in the market then suddenly disappears keeping everyone in awe.
One of the most common exit scams includes the rug pull strategy. Here popular projects which are backed by famous public figures. An ideal example of this is the recent TITAN project from iron finance, which gained popularity from the investment made by Mark Cuban.
To stay cautious from such scams, it is very important to get your basics right. Proper research and investigation can be your key in unlocking the door of exit scams.