CL
ChainLens

Rug Pull

securitybeginner

Definition

A scam where the founders of a project suddenly drain its liquidity or treasury and disappear, leaving holders with worthless tokens. The term comes from 'pulling the rug out from under you'.

Example

Squid Game Token (2021) was a textbook rug pull: token rose 300,000% in a week, then developers drained $3M liquidity and vanished.

Related