A rug pull is the crypto version of yanking the carpet. Organisers launch a token, NFT drop or DeFi pool, manufacture a rush, then destroy the market for everyone still holding.
Three common flavours show up again and again. Liquidity drain: the pair looks tradable until the creator removes the base asset and your sell button becomes theatre. Insider dump: a huge reserved supply hits the market after the hype peak. Hostile contract: sells blocked for outsiders, hidden fees, endless minting or a freeze switch aimed at everyone but the team. Hybrid versions combine all three.
None of this requires a Hollywood villain speech. It requires you to buy something whose exit depends on someone else’s honesty. Before you chase a ticker, read who can withdraw liquidity, whether LP tokens are locked or burned in a verifiable way, and what admin keys still exist. If those answers live only in a hyped chat, keep your capital in places where the exit rules do not rewrite themselves overnight.
If this already cost you money, start at Get help. Anyone selling a guaranteed clawback for an upfront fee: Fake recovery.
This article is for general information only. It is not legal or financial advice. Details change. If you have lost money, contact your bank or card issuer and use the routes on the help pages.