A Bitcoin rug pull is when someone intentionally causes a sharp decrease in the price of Bitcoin by selling large amounts of Bitcoin all at once. This can be done for many reasons, such as to cash out on investments before the price falls too low, to manipulate the market, or to simply cause chaos.
While a rug pull can be devastating to those who are holding Bitcoin at the time, it is not necessarily fatal to the cryptocurrency as a whole. In fact, Bitcoin has survived much bigger rug pulls than the one that occurred in March 2020, and it is still going strong.
The most important thing to remember if you are holding Bitcoin is to never panic sell. If you sell your Bitcoin in a panic, you are likely to lose a lot of money.
Instead, wait for the dust to settle and then make a decision about whether or not you want to sell. Rug pulls are always going to be a part of the cryptocurrency world, but that doesn’t mean that they have to ruin your investment.