What stops normal people from making money on a rug pull?

Question

I’ve been wondering about it for quite some time, note that I know practically nothing how crypto market works.

Assuming you are jumping into a crypto project of a known scamer, like Mr. Logan. If you’re expecting it to be a rug pull, is there anything that stops you from pulling out AFTER other morons buy in and BEFORE the founders pull out crashing the value?

In: Technology

Answer 1

There’s plenty of theory on “rational bubbles”. See Gali (2014) for example. It’s a bit much for me to really go into an ELI5, but no there’s nothing stopping you from trying to ride the bubble. It will be a risky endeavor, however.