Despite the prevalence of hacks and exploitations of smart contracts in web3 projects, the majority of crypto scams, over 70%, are actually rug pulls. These rug pulls are executed by anonymous teams, making it almost impossible to hold the project owners accountable. Unfortunately, investors and users of such projects suffer significant losses in terms of capital and time invested, with no means of lodging a complaint due to the project’s anonymity.
Despite this, there are some anonymous projects in web3 that are working on highly effective and scalable Blockchain solutions. However, the increased frequency of rug pulls and the anonymity of such projects undermine their ability to build trust with users and potential investors.