A rug-pull refers to a scam where developers hype an NFT but pull out after receiving substantial funds from investors. These crooked developers often use social media to build trust and fanfare around their NFT while waiting for investor funds to pour in. Then, they shut down the entire project and vanish with the funds as soon as they have enough.
A classic case of an NFT rug-pull scam is the Frosties NFT rug-pull operated by a pair of 20-year-olds, Ethan Nguyen and Andre Llacuna. They touted their NFT with several promises, including exclusive mint passes, giveaways and dibs on a metaverse game. However, they shut down their website and social media accounts after investors poured in over $1.3 million.
https://nftnow.com/features/the-biggest-rug-pulls-in-nft-history/