Ponzi Scheme vs Rug Pull

Quick comparison to help you distinguish these two crypto terms.

Ponzi Scheme
beginner
risk

A fraudulent investment structure that pays returns to early participants using funds from newer investors rather than legitimate profits, collapsing inevitably when recruitment slows and withdrawals exceed incoming capital.

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Rug Pull
beginner
risk

A rug pull is a crypto scam where project developers abandon a project and steal investor funds after artificially inflating token value through marketing and liquidity promises.

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