What is a rug pull in crypto, and the warning signs
A rug pull is when a token's team takes the money and leaves. The two main types, the on-chain warning signs, and how to get alerted when liquidity is pulled.
What a rug pull is
A rug pull is when the people behind a token take the money and disappear. The price collapses to almost zero in minutes, and holders cannot get out because the money that let them sell is gone.
The two common types
Liquidity pull: the team removes the money from the trading pool, so there is nothing left for anyone else to sell into. Dump: the team, often through many wallets, sells a large hidden supply into the pool all at once. Both are visible on-chain before and while they happen.
Warning signs
Liquidity that is not locked or burned, or that the developer controls. A developer or a few wallets holding a large share of the supply. Many top wallets funded by the same source (a bundle). Owner powers like minting new tokens. A brand-new token with hype but little real liquidity.
How DexGrade helps
DexGrade shows liquidity and locks, the developer's share, top holders, bundles and owner powers on every token page. Its rug alerts flag a token within minutes when liquidity falls sharply or the price crashes, and the Security feed lists tokens rugging right now. Add a token to your watchlist to be alerted on Telegram.