What is a rug pull?

Another major characteristic of a possible rug pull is a coin skyrocketing in price within hours. For example, a rug pull coin can move from 0 to 50X within 24 hours . This trick is meant to drive FOMO that leads more people to invest in the token.

To ensure you don’t fall victim to a rug pull, check the liquidity in a pool . However, this is only the first step. You must also check if there is a lock on the token’s pool. Most reputable projects lock pooled liquidity for a certain period.

A rug pull is where fraudsters hype up a non-fungible token (NFT) project using social media, only to make away with the money once users put their money into the project .