What is a Rug Pull?. A rug pull is when developers drain liquidity or abandon a project after attracting deposits, leaving users with near‑worthless tokens.
How it works
Control over admin keys or treasuries enables sudden withdrawals or rule changes that harm holders.
Why it matters
Recognizing warning signs protects capital—especially in new or unaudited projects.
Common pitfalls
- Trusting anonymous teams with upgradeable contracts
- Ignoring time‑locks and multi‑sig requirements
- Buying solely on high APY promises
Quick example
A token launches with huge yields; days later, liquidity is removed and the price collapses.
See also
- Honeypot Scam
- Audit
- Admin Keys
TL;DR: What is a Rug Pull? defined in plain English with practical next steps.
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