The Crypto Trap That’s Costing People Millions — Here’s How to Outsmart It

Rug pulls are one of the most common — and devastating — scams in crypto.
They happen fast.
And if you’re blindly chasing hype without doing your homework, you could lose everything in seconds.

What Is a Rug Pull?

A rug pull is when the creators of a crypto project suddenly drain all the liquidity and vanish — leaving investors stuck holding worthless tokens.
It’s called a “rug pull” because they pull the rug right out from under you.

How Rug Pulls Happen:

1. A hyped new token launches (usually on Telegram, Discord, or Twitter)
   
   

2. The price rockets up fast as people FOMO in
   
   

3. The developers control most of the supply or the liquidity pool
   
   

4. Once enough money is in, they dump everything or drain the pool
   
   

5. Price crashes to zero instantly
   
   

6. The team disappears, deletes accounts, and shuts down the website
   
   

Red Flags of a Rug Pull:

How to Avoid Rug Pulls:

Use Tools Like Token Sniffer or DEXTools
Check for:

• Locked liquidity
  
  

• Verified contract
  
  

• Suspicious ownership rules
  
  

Research the Team
If you can’t verify who’s behind it, walk away.

Verify Liquidity Locks
Look for LP locks on platforms like Unicrypt, Team Finance, or PinkSale.

Don’t Rush In
Real projects don’t need fake hype. If you feel rushed, that’s a red flag.

Check Holder Distribution
If one wallet holds 70%+ of supply — avoid it.

The Real Rule of Crypto:

If you can’t sell it, you don’t own it.
Some rug pulls even block selling entirely. You buy — and you’re stuck.

Final Thought:

Rug pulls are designed to fool beginners.
The websites look clean. The graphics look sharp. The promises sound incredible.

But here’s the truth:
Crypto moves fast. So do scams.

Take your time. Do your research. Never invest what you can’t afford to lose.