What is Rug pull?
A project that takes deposits and then removes the liquidity or dumps its own supply.
The classic version: a token launches, buyers pile in, and the team withdraws the pooled liquidity and disappears. Withdrawing liquidity is sometimes a single function call.
Signs to check before any presale: locked liquidity, a timelocked contract, supply allocation and whether the team can mint more.
Related terms
- PresaleTokens
Selling a token before it lists publicly, usually to raise money for a project.
- Honeypot tokenSecurity
A token whose contract lets you buy but blocks selling.
The chance that a contract's code or admin keys take your funds, regardless of price.