What Is a Rug Pull in Crypto? Understanding and Avoiding Meme Coin Scams
A rug pull is a type of crypto scam where developers or insiders create a token—often a meme coin—and then suddenly withdraw all liquidity, causing the token's price to collapse and investors to lose their funds. This fraudulent activity manipulates token supply and liquidity pools, primarily on decentralized exchanges. Understanding rug pulls is essential for crypto investors, especially in fast-growing ecosystems like Solana, where meme coins are popular. Developers launch meme coins by creating tokens and adding liquidity to platforms such as pump.fun and Raydium.
