| Rug Pull | |
|---|---|
| Type | Exit scam |
| Also known as | Rug, rugging, "the dev did something" |
| Warning signs | Anonymous dev, locked Telegram, dog logo |
| Survivors | None reported |
A '''rug pull''' (or simply '''rug''') is an exit scam in which a token's creators abruptly drain liquidity or dump their holdings, sending the price to zero and holders into mourning.
The name derives from the expression "pulling the rug out from under someone," which is exactly what it feels like, except the rug was also on fire and you paid for the rug.
Types
Hard rug
Liquidity is removed entirely. The chart resembles a cliff photographed from a helicopter.
Soft rug
The dev slowly sells over days while tweeting "big things coming 👀". Death by a thousand candles.
Slow rug
The team simply stops doing anything. Technically not a crime, spiritually a felony.
Prevention
Check whether liquidity is locked, whether the contract is renounced, and whether the team is public. If you're new here: assume most launches fail, only risk what you can lose, and never let FOMO do the math for you.