Wallets, Security & Custody

What is a rug pull in crypto?

A rug pull is a crypto scam in which the creators of a token or project suddenly withdraw all invested funds and abandon it, leaving holders with worthless assets. It typically follows aggressive marketing that attracts buyers, after which the developers drain liquidity or sell their large holdings and disappear. For example, a new token may surge on hype before its team removes the liquidity pool, collapsing the price to near zero. Common red flags include anonymous teams, locked or absent liquidity, and promises of unusually high returns.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.