Glossary / Rug pull

Rug pull

A rug pull is a scam where token creators drain the liquidity or dump their supply, leaving buyers with a coin they cannot sell.

Why it matters

Checking liquidity locks, holder concentration and contract permissions catches many of them.

Scan new tokens for risk

Related terms

Honeypot tokenA honeypot is a token whose contract lets you buy but blocks or heavily taxes selling.โ€ฆLiquidityLiquidity is how easily you can buy or sell without moving the price much.โ€ฆHolder concentrationHolder concentration shows how much of a token's supply sits in its largest wallets.โ€ฆ

Written by the VaultX AI team. Educational only, not investment advice.

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