People could really do with understanding the fundamental differences between a ‘rug pull’ and a market dip.

I’ve noticed with yesterday’s market dip (and quite honestly with every semi-significant market dip over the last few years) that there are a relatively high number of people – certainly not a majority, but enough that it’s noticeable – that will refer to certain tokens as having been ‘rug pulled’.

I know that a lot of people are reactionary, and a lot of people do tend to react with emotion when it comes to their own financial investment suffering a downtrend, but I really do believe that some perspective needs to be applied in such cases.

If your token’s price dives by 20% over the course of a few minutes, due to Bitcoin itself falling by a few percent, and then slowly climbs back up over the coming hours or days, this is NOT a rug pull. This is a market-wide response to the live price of Bitcoin. It’s the exact same principle that can be observed when Bitcoin suddenly posts a few big green candles out of nowhere, and altcoins will follow suit.

If your token’s price drops by greater than 99% out of absolutely nowhere, this IS a rug pull. It’s a coordinated, intentional and permanent action. It is irrecoverable. Liquidity has been stripped and the token becomes redundant.

I really think that there’s many in the Crypto space that need to understand this. If your token is 50% down on ATH price, this doesn’t represent a rug pull. Nor does a drop in price that directly correlates to Bitcoin’s own drop in price. I think that, as hard as it can be sometimes, it’s important not to grow too personally attached to your investment.