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Rug Pull

A scam where a project's creators abruptly withdraw funds or abandon the project, leaving other holders with worthless tokens.

A rug pull is a type of exit scam where a project's team drains its liquidity pool, sells a large pre-allocated token holding, or simply disappears, leaving everyone else holding a token that's collapsed in value or become untradeable. It's one of the most common ways newcomers lose money in crypto.

Warning signs include anonymous teams with no verifiable track record, locked liquidity that isn't actually verifiable on-chain, unrealistic promised returns, and aggressive hype with little real substance behind it — none of these guarantee a scam, but they're all reasons to dig deeper before putting in money.

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