CRYPTO GLOSSARY · RISK

What is Rug Pull?

Crypto scam where developers steal funds.

📖 Full Definition

A rug pull is a malicious maneuver where cryptocurrency developers abandon a project and run away with investors' funds. Common in DeFi and NFT projects, rug pulls leave investors with worthless tokens.

💡 Example

In 2021, the SQUID token rug pull saw developers steal $3.3 million after the token's 75,000% rise.

🔗 Related Terms

Shitcoin

Cryptocurrency with little value or use case.

Pump and Dump

Coordinated price manipulation scheme.

🔮 Ready to Apply This Knowledge?

See AI-powered predictions for top cryptocurrencies, updated daily.

View Predictions →More Terms