A rug pull is a crypto scam where the people behind a token or project suddenly remove liquidity, disappear, or make the asset nearly worthless for buyers.
How rug pulls happen
Some rug pulls happen when developers drain a liquidity pool. Others use hidden smart contract permissions, fake promises, aggressive marketing, or token rules that stop ordinary users from selling.
Warning signs
Red flags include anonymous teams, unrealistic returns, copied websites, no real product, unlocked liquidity, pressure to buy fast, and vague explanations of token utility.
A rug pull is one reason crypto users should read tokenomics, wallet permissions, liquidity details, and smart contract risk before chasing hype.