In crypto, "rug pull" (often mistakenly written as "rug bull") is a scam in which developers of a crypto project suddenly withdraw all funds and disappear, leaving investors with worthless tokens.

🔍 What is a Rug Pull?

A rug pull happens when a team pumps up the price of their coin/token, often through hype and fake promises.

Once enough investors put in money, the scammers "pull the rug" by removing all liquidity or dumping their tokens.

This causes the coin’s value to crash to nearly zero, and investors lose their money.

🚨 Signs of a Potential Rug Pull:

1. Anonymous team – No verifiable identity.

2. No locked liquidity – Devs can remove funds anytime.

3. Overhyped marketing – Promises of crazy returns.

4. No audit – Smart contract not verified by a third party.

5. No real use case – Project exists only to attract buyers.

🧠 Example:

Suppose a new coin called MoonCat launches. People are told it will go “100x.” Influencers start promoting it. You buy in. After a few days, the price drops to zero — devs have sold off everything and disappeared. That’s a rug pull.