Rug pull

How it is used

Informal but widely used, even in news and security reports. Projects get rugged or rug-pulled, and analysts list warning signs such as an anonymous team, unlocked liquidity or no audit. It is a form of fraud, not a normal market fall.

Example sentences

1. The developers removed the liquidity overnight; it was a classic rug pull.

2. Our report lists the warning signs of a rug pull, such as an anonymous team and unlocked liquidity.

Common collocations

• rug pull scam
• victims of a rug pull
• get rugged
• warning signs of a rug pull

Related terms

• pump and dumpA form of market manipulation in which a group buys a little-known coin cheaply, hypes it with misleading claims to push the price up, then sells to latecomers and lets the price crash.
• liquidity poolA smart contract that holds two or more tokens which traders can swap against. Users who deposit tokens into it earn a share of the trading fees.
• exploitAn attack that takes advantage of a bug or design weakness, often in a smart contract or bridge, to steal funds or make a system behave in a way its creators did not intend.
• auditA detailed security review of smart contract code by independent experts, who look for bugs and weaknesses before the code goes live and publish their findings in a report.
• phishingA trick in which attackers pretend to be a trusted company or person to make victims reveal passwords, seed phrases or private keys, or approve a harmful transaction.

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