SecurityBeginner6 min
What Is a Rug Pull? (Explained with Animations)
By CoinMarketCap
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Video by CoinMarketCap · All rights reserved to original creator.
Summary
A rug pull is one of the most common crypto exit scams — developers abandon a project after accumulating funds, often by removing liquidity or selling all their tokens at once. This animated CoinMarketCap video explains how rug pulls happen and how to spot them before it's too late.
Key Concepts
Rug pullLiquidity removalExit scamToken lockSmart contract audit
Things To Remember
- A rug pull happens when developers suddenly drain a project's liquidity or funds.
- Anonymous teams, unaudited contracts, and locked liquidity are key risk factors.
- Always check if project liquidity is locked using tools like Team Finance or Unicrypt.
- If something promises guaranteed returns, it's very likely a scam.
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Attribution: This video was created by CoinMarketCap. All rights belong to the original creator. Crypto Education does not claim ownership of this content.