Rug Pull
A scam where project creators suddenly take all the money and disappear. They pull the rug out from under investors.
Example
A new token launches, people invest millions, then the creators drain all the funds and delete their social media.
Core Concepts
⚙️How It Works
- 1
Launch & Hype
Scammers create a token/project with promises of huge returns
- 2
Build FOMO
Aggressive marketing, fake partnerships, bot activity create buying pressure
- 3
Accumulate Value
Real users buy in, increasing the liquidity pool or treasury
- 4
The Pull
Founders drain liquidity, dump tokens, or exploit backdoors in code
- 5
Disappear
Social media deleted, website gone, founders vanish with funds
⚠️Risks & Warnings
- •Anonymous teams can disappear without consequence
- •Unaudited contracts may contain hidden withdrawal functions
- •Locked liquidity can sometimes be unlocked early
- •Token permissions may allow unlimited minting or transfer blocking
- •Fake audits and partnerships are common deception tactics