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The current blockchain project is a structure that is very vulnerable to embezzlement and breach of trust because the project team has the funds collected from the tokens or NFT sales.
Traditional fund managements
There’s nothing investors can do even if the project team sells and goes into hiding tokens and NFTs of no value.
These are common problems.
1. Project Team’s disappearance
1.1 Disappearance with token/NFT sales funds
1.2 Disappearance with funds after liquidity release
2. Selling token at the market price
2.1 Selling their current token at the market price.
2.2 Selling more tokens at the market price after additional issuing
3. Token mortgage
4. Unilateral unreasonable liquidation
5. Other embezzlement and breach of trust
Learning more about project information such as checking project development team information / code audit confirmation / development activity progression / investment company confirmation before investment.
Is this the only way to prevent Rug Pull?