What Is Rug Pull?

A rug pull is a crypto scam where project developers suddenly remove liquidity or abandon a project after raising funds from investors, causing the token price to collapse to near zero. Common rug pull patterns include developers draining DEX liquidity pools, dumping pre-mined tokens, or disabling sell functions in smart contracts. Sonar Tracker risk assessment features help detect potential rug pulls by flagging tokens where developer wallets show suspicious withdrawal patterns, rapid liquidity removal, or concentrated holder distribution.

Related Terms

Market ManipulationPump and DumpLiquidityDeFi (Decentralized Finance)

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