![Crypto Terms Glossary: What is Exit Scam? Crypto Terms Glossary: What is Exit Scam?](/img/136/552/what-is-exit-scam-sm.webp)
In the context of blockchain, an exit scam is a process whereby a company creates a fake business model, Whitepaper, website, and other information to pose as a credible blockchain enterprise. It then offers investors a means to participate in various funding rounds where it sells coins or tokens that represent equity in the project, and ultimately executes a large inside-job market sell-off orchestrated by the founding members of the project who proceed to steal investors' capital and go on the run.