Economics Design
Economics Design
A Discussion on the Risks and Prevention of Rug Pulls

A Discussion on the Risks and Prevention of Rug Pulls

Challenges of Rug Pulls in Crypto and NFTs

In this episode we talk about rug pull with Emma Jane and Anna Vladi.

Rug pull is a big a risk in crypto. The general category of risk is Tech risk, Economic Risk and Price volatility risk and Rug pull exists in all these risks.   

Rug pull also exists within NFTs especially when it's built on top of web2 systems with web3 architecture or rug pull by artists on Opensea and metadata on centralised servers.  

How to prevent rug pull from team's perspective:  

1. Use Multi sig wallet initially 

2. Audit 

3. Release dev in stages 

4. Reuse existing contracts that's trialed and tested instead of building from scratch  

How to prevent rug pull from investor's perspective:  

1. Risk management. Think about tail risk. Think about black swan event. the asymmetric convexity of risks.  

2. Careful where you put your money. anon vs non-anon teams 

3. Get legal opinions of projects

Economics Design
Economics Design
We talk about the design of economic systems. This could be video game simulated economy or real business world like frequent flyer points system or blockchain based token economy.