How to Spot a Rug Pull

Rug pulls follow recognisable patterns. These are the checks that catch most of them before you buy.

Updated October 1, 2026 · 2 min read

What a rug pull is

In a rug pull, the people behind a token take the money and leave. The most common forms:

Liquidity pull: the creator withdraws the ETH, BNB or stablecoins from the trading pool. The token's price collapses because there is nothing left to sell into.
Dump: insiders who hold a large share of supply sell into buyers' demand.
Malicious contract: hidden code lets the owner mint unlimited tokens, block selling (honeypot) or raise the sell tax to 100%.

Red flags

Liquidity that can vanish

Is the pool's liquidity locked in a time-lock contract, or held by a wallet that can withdraw it? Unlocked liquidity on a new token is the single biggest risk. Our DEX pages show liquidity and flag tokens with only one pool.

Concentrated holdings

If a handful of wallets (excluding the pool and known exchange wallets) hold most of the supply, they can crash the price at will. Block explorers show the top holders.

Contract permissions

Can the owner mint tokens, pause trading, blacklist wallets or change fees? Was ownership renounced? Token-scanner sites read these permissions from the contract for you.

Very young and very hyped

Most rug pulls happen within days of launch. Paid promotions, countdowns, "next 100x" claims and pressure to buy before a deadline are all designed to stop you checking.

Copycats

Scammers launch tokens with the same name and ticker as a real project. Always verify the contract address against the official website.

No product, anonymous team

Anonymity is common in crypto and not proof of a scam, but it removes accountability. Combined with no working product, it should raise your bar a lot.

A two-minute checklist

Contract address matches the official source.
Pool age: more than a few days.
Liquidity is meaningful and ideally locked.
Top holders do not control most of the supply.
Other wallets have sold successfully.
No owner powers to mint, pause or blacklist, or ownership renounced.

Passing every check does not make a token safe; failing one is reason enough to walk away.

Keep reading

Airdrop Scams and How to Stay Safe

Real airdrops reward users with free tokens; fake ones are one of the most common ways wallets get drained. How to tell them apart.

How to Keep Your Crypto Safe

Most crypto losses are not hacks of blockchains but of people. Here is how to set up wallets, protect your seed phrase and avoid the scams that cause most losses.

Educational content only, not financial advice.