Security & Risk
Also: rug, exit scam
Rug Pull
An exit scam where project creators drain liquidity or abandon a project after attracting investor funds.
A rug pull is when the team behind a project — usually a token or DeFi protocol — suddenly withdraws liquidity, sells their token holdings, or abandons the project after raising funds from investors. The name references pulling the rug out from under investors. Rug pulls range from outright theft to softer 'slow rug' abandonment. Red flags include anonymous teams, unaudited contracts, unlocked liquidity, and concentrated token ownership among insider wallets.
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