Security · Question 5 of 8
What is a rug pull?
A rug pull is when the people behind a crypto project suddenly take the funds or abandon it, leaving holders with worthless or inaccessible assets. It's a common scam in new, hyped projects.
How it plays out
Promoters build hype around a new token or project, attract money, then withdraw the value or disappear — collapsing the asset's price and leaving participants stranded.
Warning signs
- Anonymous teams making big promises.
- Pressure to buy early before 'you miss out'.
- Unrealistic guaranteed returns.
- Little real product behind the marketing.
Why it matters
Rug pulls target the fear of missing out on the 'next big thing'. Recognizing the signs protects you from a whole category of loss.
A practical way to picture it
It's like investing in a flashy pop-up shop that vanishes overnight with the till — lots of buzz, no substance, and no one to hold accountable.
Risks & common mistakes
- Hype and urgency are core tactics — treat both as warnings.
- Anonymous teams remove accountability.
- This is educational only and not investment advice.
Put it into practice
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Rehearse safely in the Wallet Simulator
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Last reviewed 2026-06-25. This topic can change over time; always confirm current specifics from primary sources.