What is Rug Pull?
A crypto scam where creators abandon a project and run off with investors' money.
A 'rug pull' is when the creators of a crypto token hype it up, attract buyers, then suddenly drain the liquidity or dump their holdings — sending the price to zero and vanishing. The rug, quite literally, is pulled.
It's the crypto version of a pump-and-dump plus a disappearing act. Red flags: anonymous teams with no track record, locked-out selling, and enormous insider token holdings.
Protect yourself: check who controls the liquidity, whether it's locked, and how tokens are distributed. Do your due diligence before aping in.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.