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⚠️ The Truth Behind High-Digit Crypto Coins
Join Via Telegram https://t.me/yournottrillionaire
Getting 1 trillion coins for just $1 sounds like a crazy opportunity, right?
But here’s the truth 👉 It’s a scam tactic.
These “death coins” like BNBTIGER, BTCBR, fake WBTC, and USDT.z give you huge digits — but they come with:
❌ No liquidity
❌ No real market
❌ No use case
You can’t sell them. You can’t trade them. Your wallet shows trillions, but your portfolio is worth zero.
These tokens are made to trap beginners who don’t know how liquidity works. Once you buy, you’re stuck. The devs dump, and disappear.
🔍 Don’t get fooled by fake digits.
Look for: ✔️ Locked liquidity
✔️ Verified teams
✔️ Use case
✔️ Real tokenomics
💬 Have you ever bought one of these trap tokens? Drop the names & let others know. Let’s clean up crypto together. #CryptoScamAlert #BNBTiger #Rugpull $BNB
$ETH
$BTC
👈 click my referral code. Pay id - 480001284
Getting 1 trillion coins for just $1 sounds like a crazy opportunity, right?
But here’s the truth 👉 It’s a scam tactic.
These “death coins” like BNBTIGER, BTCBR, fake WBTC, and USDT.z give you huge digits — but they come with:
❌ No liquidity
❌ No real market
❌ No use case
You can’t sell them. You can’t trade them. Your wallet shows trillions, but your portfolio is worth zero.
These tokens are made to trap beginners who don’t know how liquidity works. Once you buy, you’re stuck. The devs dump, and disappear.
🔍 Don’t get fooled by fake digits.
Look for: ✔️ Locked liquidity
✔️ Verified teams
✔️ Use case
✔️ Real tokenomics
💬 Have you ever bought one of these trap tokens? Drop the names & let others know. Let’s clean up crypto together. #CryptoScamAlert #BNBTiger #Rugpull $BNB
$ETH
$BTC
👈 click my referral code. Pay id - 480001284
Binance Academy
--
What Is a Rug Pull in Crypto and How Does It Work?
Key Takeaways
A rug pull is a type of crypto scam where developers abandon a project and run off with investors' funds, leaving the project inactive or worthless.
These incidents often involve draining liquidity pools, exploiting vulnerabilities in smart contracts, or abandoning the project entirely.
Some common warning signs include unaudited code, anonymous teams, overly ambitious claims, and liquidity that can be easily removed.
Rug pulls are a strong reminder to always do your own research and stay alert before putting your money into any crypto project.
Introduction
If you’ve been in crypto for a while, you’ve probably seen this play out: a new token launches, the hype builds, the price climbs rapidly, and then everything crashes. The website is taken down, social media goes silent, and investors are left wondering what happened.
This type of exit scam is known as a rug pull and has led to millions in losses in the crypto space. Let’s take a closer look at how rug pulls work and what you can do to avoid falling for one.
What Is a Rug Pull?
A rug pull in crypto is a type of scam where the creators of a cryptocurrency project suddenly withdraw liquidity or abandon the project, leaving investors with worthless tokens. It’s like being invited to a group dinner, asked to split the bill upfront, and then watching the host disappear before anything arrives.
Rug pulls are similar to traditional pump-and-dump schemes, but they often use more complex tools like manipulating smart contracts or draining liquidity pools. These scams started becoming more common during the decentralized finance (DeFi) boom in 2020, when launching a token on a decentralized exchange (DEX) became fast, easy, and was largely unregulated. With minimal checks in place, it was easy for bad actors to exploit the system and take advantage of unsuspecting investors.
How Do Rug Pulls Work?
Rug pulls can happen in a few different ways. They can be technical (via malicious smart contract code) or non-technical (via social manipulation or centralized control). In some cases, it might be a combination of both.
1. Liquidity pool withdrawal
On decentralized exchanges (like Uniswap or PancakeSwap), tokens need liquidity pools so people can trade them. These pools let users swap tokens directly without relying on intermediaries.
Here’s how a typical rug pull unfolds:
A team launches a new token and adds it to a liquidity pool, usually paired with another token like ETH or USDT.
Early buyers jump in, causing the token’s price to rise and the pool to grow.
As more people buy in, the pool ends up holding a significant amount of valuable crypto.
Then, without warning, the developers pull out all (or most of) the liquidity they originally added.
With almost nothing left in the pool, the market collapses, and the token’s price drops close to zero.
This kind of rug pull is the most common and can happen within hours or days of a token launch.
2. Smart contract manipulation
In some cases, the rug pull is planned from the very beginning. Instead of exiting suddenly, the scam is embedded in the project’s code. Developers might add functions to the smart contract that allow them to:
Mint unlimited tokens, which floods the supply and causes the price to crash.
Stop users from selling their tokens using honeypot contracts. These smart contracts let people buy the token but prevent them from selling, making the tokens worthless.
Transfer tokens directly from users’ wallets without their consent.
These scams are especially hard to spot without a proper code audit. Even worse, some honeypot tokens are marked as “verified” to appear safe. But, in many cases, the malicious code is buried under complex logic, or only activates after enough people have invested.
3. The social rug
Not every rug pull involves complicated code. Some are built on trust, which is exactly what makes them so effective. These scams often start with a crypto project building excitement through social media, attracting a community, and getting shoutouts from influencers. It all seems legitimate, with a token or non-fungible token (NFT) launch that draws in investors.
But once enough people have invested, the team disappears without a trace. The project’s social media channels and website vanish along with the funds. If the project creators have full control over the token supply, these types of rug pulls may also happen on vulnerable launchpads or centralized platforms. In the end, it comes down to social manipulation and empty promises.
How to Spot a Potential Rug Pull
While not every project with these traits is a scam, spotting a few of these signs should raise a red flag. Here’s what to look out for:
Anonymous teams
While anonymity is part of crypto culture, projects with no transparency around their developers or founders are harder to hold accountable. That makes it easier for bad actors to disappear with investor funds.
No smart contract audit
Auditing or formally verifying a smart contract helps catch bugs, vulnerabilities, and unintended behavior before the code goes live. Without a review from a reputable security firm, hidden risks may remain, such as functions that allow unlimited token minting or give developers full control over the contract. Be careful with audits from shady or unknown security firms.
Unlocked liquidity
If a project doesn’t lock its liquidity or has no clear vesting schedule for the team’s tokens, there’s a higher risk that funds could be withdrawn or dumped on the market at any time.
Reputable projects often lock liquidity and implement vesting periods for team members, usually lasting between one and four years. While not a guarantee, this helps build trust and suggests that the team is committed to the project’s long-term success.
Unrealistic promises
Be cautious of projects that advertise exceptionally high returns or guaranteed profits. If a project claims support from well-known investors, companies, or influencers, those claims should be backed by credible proof, such as public announcements or confirmed partnerships.
How to Protect Yourself
While there is no guaranteed way to avoid every rug pull, there are some steps you can take to lower the risk:
Do your own research (DYOR)
Look beyond headlines, hype, or influencer promotions, and examine the project for yourself. A good way to start is by reading the project’s whitepaper to understand its goals, technology, and tokenomics. You can also use block explorers, like Etherscan or SolScan, to review token distribution, see if smart contract ownership has been renounced, and check transaction history for suspicious activity.
Check liquidity locks
Look into whether the project has locked its liquidity and for how long. Many legitimate projects use third-party services to manage liquidity locks, making the process more transparent and verifiable for investors.
Look for audits
Check whether the audit report is publicly available and ensure it is up to date, as older reports may not cover recent changes to the code. While an audit cannot guarantee complete safety, it can help identify common bugs, vulnerabilities, and potentially malicious code.
Stick to reputable platforms
When exploring new tokens or NFTs, choose platforms with a strong track record and rigorous vetting processes. Reliable platforms like Binance Launchpool apply strict evaluation criteria and conduct due diligence on project teams before listing. This significantly reduces the chances of encountering fraudulent or poorly managed projects.
Closing Thoughts
Rug pulls are an unfortunate part of the crypto space, especially in fast-moving areas like DeFi, where new projects launch every day. While many teams are building with good intentions, the lack of regulation and oversight still creates opportunities for bad actors to take advantage of unsuspecting users.
With the growing availability of tools, audits, and educational resources, identifying potential scams is becoming easier. However, it’s still important to conduct thorough research and approach every new project with caution and a critical mindset.
Further Reading
How Binance Fights Financial Crime
What Are Airdrop Scams and How to Avoid Them?
5 Ways to Improve Your Binance Account Security
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
A rug pull is a type of crypto scam where developers abandon a project and run off with investors' funds, leaving the project inactive or worthless.
These incidents often involve draining liquidity pools, exploiting vulnerabilities in smart contracts, or abandoning the project entirely.
Some common warning signs include unaudited code, anonymous teams, overly ambitious claims, and liquidity that can be easily removed.
Rug pulls are a strong reminder to always do your own research and stay alert before putting your money into any crypto project.
Introduction
If you’ve been in crypto for a while, you’ve probably seen this play out: a new token launches, the hype builds, the price climbs rapidly, and then everything crashes. The website is taken down, social media goes silent, and investors are left wondering what happened.
This type of exit scam is known as a rug pull and has led to millions in losses in the crypto space. Let’s take a closer look at how rug pulls work and what you can do to avoid falling for one.
What Is a Rug Pull?
A rug pull in crypto is a type of scam where the creators of a cryptocurrency project suddenly withdraw liquidity or abandon the project, leaving investors with worthless tokens. It’s like being invited to a group dinner, asked to split the bill upfront, and then watching the host disappear before anything arrives.
Rug pulls are similar to traditional pump-and-dump schemes, but they often use more complex tools like manipulating smart contracts or draining liquidity pools. These scams started becoming more common during the decentralized finance (DeFi) boom in 2020, when launching a token on a decentralized exchange (DEX) became fast, easy, and was largely unregulated. With minimal checks in place, it was easy for bad actors to exploit the system and take advantage of unsuspecting investors.
How Do Rug Pulls Work?
Rug pulls can happen in a few different ways. They can be technical (via malicious smart contract code) or non-technical (via social manipulation or centralized control). In some cases, it might be a combination of both.
1. Liquidity pool withdrawal
On decentralized exchanges (like Uniswap or PancakeSwap), tokens need liquidity pools so people can trade them. These pools let users swap tokens directly without relying on intermediaries.
Here’s how a typical rug pull unfolds:
A team launches a new token and adds it to a liquidity pool, usually paired with another token like ETH or USDT.
Early buyers jump in, causing the token’s price to rise and the pool to grow.
As more people buy in, the pool ends up holding a significant amount of valuable crypto.
Then, without warning, the developers pull out all (or most of) the liquidity they originally added.
With almost nothing left in the pool, the market collapses, and the token’s price drops close to zero.
This kind of rug pull is the most common and can happen within hours or days of a token launch.
2. Smart contract manipulation
In some cases, the rug pull is planned from the very beginning. Instead of exiting suddenly, the scam is embedded in the project’s code. Developers might add functions to the smart contract that allow them to:
Mint unlimited tokens, which floods the supply and causes the price to crash.
Stop users from selling their tokens using honeypot contracts. These smart contracts let people buy the token but prevent them from selling, making the tokens worthless.
Transfer tokens directly from users’ wallets without their consent.
These scams are especially hard to spot without a proper code audit. Even worse, some honeypot tokens are marked as “verified” to appear safe. But, in many cases, the malicious code is buried under complex logic, or only activates after enough people have invested.
3. The social rug
Not every rug pull involves complicated code. Some are built on trust, which is exactly what makes them so effective. These scams often start with a crypto project building excitement through social media, attracting a community, and getting shoutouts from influencers. It all seems legitimate, with a token or non-fungible token (NFT) launch that draws in investors.
But once enough people have invested, the team disappears without a trace. The project’s social media channels and website vanish along with the funds. If the project creators have full control over the token supply, these types of rug pulls may also happen on vulnerable launchpads or centralized platforms. In the end, it comes down to social manipulation and empty promises.
How to Spot a Potential Rug Pull
While not every project with these traits is a scam, spotting a few of these signs should raise a red flag. Here’s what to look out for:
Anonymous teams
While anonymity is part of crypto culture, projects with no transparency around their developers or founders are harder to hold accountable. That makes it easier for bad actors to disappear with investor funds.
No smart contract audit
Auditing or formally verifying a smart contract helps catch bugs, vulnerabilities, and unintended behavior before the code goes live. Without a review from a reputable security firm, hidden risks may remain, such as functions that allow unlimited token minting or give developers full control over the contract. Be careful with audits from shady or unknown security firms.
Unlocked liquidity
If a project doesn’t lock its liquidity or has no clear vesting schedule for the team’s tokens, there’s a higher risk that funds could be withdrawn or dumped on the market at any time.
Reputable projects often lock liquidity and implement vesting periods for team members, usually lasting between one and four years. While not a guarantee, this helps build trust and suggests that the team is committed to the project’s long-term success.
Unrealistic promises
Be cautious of projects that advertise exceptionally high returns or guaranteed profits. If a project claims support from well-known investors, companies, or influencers, those claims should be backed by credible proof, such as public announcements or confirmed partnerships.
How to Protect Yourself
While there is no guaranteed way to avoid every rug pull, there are some steps you can take to lower the risk:
Do your own research (DYOR)
Look beyond headlines, hype, or influencer promotions, and examine the project for yourself. A good way to start is by reading the project’s whitepaper to understand its goals, technology, and tokenomics. You can also use block explorers, like Etherscan or SolScan, to review token distribution, see if smart contract ownership has been renounced, and check transaction history for suspicious activity.
Check liquidity locks
Look into whether the project has locked its liquidity and for how long. Many legitimate projects use third-party services to manage liquidity locks, making the process more transparent and verifiable for investors.
Look for audits
Check whether the audit report is publicly available and ensure it is up to date, as older reports may not cover recent changes to the code. While an audit cannot guarantee complete safety, it can help identify common bugs, vulnerabilities, and potentially malicious code.
Stick to reputable platforms
When exploring new tokens or NFTs, choose platforms with a strong track record and rigorous vetting processes. Reliable platforms like Binance Launchpool apply strict evaluation criteria and conduct due diligence on project teams before listing. This significantly reduces the chances of encountering fraudulent or poorly managed projects.
Closing Thoughts
Rug pulls are an unfortunate part of the crypto space, especially in fast-moving areas like DeFi, where new projects launch every day. While many teams are building with good intentions, the lack of regulation and oversight still creates opportunities for bad actors to take advantage of unsuspecting users.
With the growing availability of tools, audits, and educational resources, identifying potential scams is becoming easier. However, it’s still important to conduct thorough research and approach every new project with caution and a critical mindset.
Further Reading
How Binance Fights Financial Crime
What Are Airdrop Scams and How to Avoid Them?
5 Ways to Improve Your Binance Account Security
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Binance Academy
--
What Is a Rug Pull in Crypto and How Does It Work?
Key Takeaways
A rug pull is a type of crypto scam where developers abandon a project and run off with investors' funds, leaving the project inactive or worthless.
These incidents often involve draining liquidity pools, exploiting vulnerabilities in smart contracts, or abandoning the project entirely.
Some common warning signs include unaudited code, anonymous teams, overly ambitious claims, and liquidity that can be easily removed.
Rug pulls are a strong reminder to always do your own research and stay alert before putting your money into any crypto project.
Introduction
If you’ve been in crypto for a while, you’ve probably seen this play out: a new token launches, the hype builds, the price climbs rapidly, and then everything crashes. The website is taken down, social media goes silent, and investors are left wondering what happened.
This type of exit scam is known as a rug pull and has led to millions in losses in the crypto space. Let’s take a closer look at how rug pulls work and what you can do to avoid falling for one.
What Is a Rug Pull?
A rug pull in crypto is a type of scam where the creators of a cryptocurrency project suddenly withdraw liquidity or abandon the project, leaving investors with worthless tokens. It’s like being invited to a group dinner, asked to split the bill upfront, and then watching the host disappear before anything arrives.
Rug pulls are similar to traditional pump-and-dump schemes, but they often use more complex tools like manipulating smart contracts or draining liquidity pools. These scams started becoming more common during the decentralized finance (DeFi) boom in 2020, when launching a token on a decentralized exchange (DEX) became fast, easy, and was largely unregulated. With minimal checks in place, it was easy for bad actors to exploit the system and take advantage of unsuspecting investors.
How Do Rug Pulls Work?
Rug pulls can happen in a few different ways. They can be technical (via malicious smart contract code) or non-technical (via social manipulation or centralized control). In some cases, it might be a combination of both.
1. Liquidity pool withdrawal
On decentralized exchanges (like Uniswap or PancakeSwap), tokens need liquidity pools so people can trade them. These pools let users swap tokens directly without relying on intermediaries.
Here’s how a typical rug pull unfolds:
A team launches a new token and adds it to a liquidity pool, usually paired with another token like ETH or USDT.
Early buyers jump in, causing the token’s price to rise and the pool to grow.
As more people buy in, the pool ends up holding a significant amount of valuable crypto.
Then, without warning, the developers pull out all (or most of) the liquidity they originally added.
With almost nothing left in the pool, the market collapses, and the token’s price drops close to zero.
This kind of rug pull is the most common and can happen within hours or days of a token launch.
2. Smart contract manipulation
In some cases, the rug pull is planned from the very beginning. Instead of exiting suddenly, the scam is embedded in the project’s code. Developers might add functions to the smart contract that allow them to:
Mint unlimited tokens, which floods the supply and causes the price to crash.
Stop users from selling their tokens using honeypot contracts. These smart contracts let people buy the token but prevent them from selling, making the tokens worthless.
Transfer tokens directly from users’ wallets without their consent.
These scams are especially hard to spot without a proper code audit. Even worse, some honeypot tokens are marked as “verified” to appear safe. But, in many cases, the malicious code is buried under complex logic, or only activates after enough people have invested.
3. The social rug
Not every rug pull involves complicated code. Some are built on trust, which is exactly what makes them so effective. These scams often start with a crypto project building excitement through social media, attracting a community, and getting shoutouts from influencers. It all seems legitimate, with a token or non-fungible token (NFT) launch that draws in investors.
But once enough people have invested, the team disappears without a trace. The project’s social media channels and website vanish along with the funds. If the project creators have full control over the token supply, these types of rug pulls may also happen on vulnerable launchpads or centralized platforms. In the end, it comes down to social manipulation and empty promises.
How to Spot a Potential Rug Pull
While not every project with these traits is a scam, spotting a few of these signs should raise a red flag. Here’s what to look out for:
Anonymous teams
While anonymity is part of crypto culture, projects with no transparency around their developers or founders are harder to hold accountable. That makes it easier for bad actors to disappear with investor funds.
No smart contract audit
Auditing or formally verifying a smart contract helps catch bugs, vulnerabilities, and unintended behavior before the code goes live. Without a review from a reputable security firm, hidden risks may remain, such as functions that allow unlimited token minting or give developers full control over the contract. Be careful with audits from shady or unknown security firms.
Unlocked liquidity
If a project doesn’t lock its liquidity or has no clear vesting schedule for the team’s tokens, there’s a higher risk that funds could be withdrawn or dumped on the market at any time.
Reputable projects often lock liquidity and implement vesting periods for team members, usually lasting between one and four years. While not a guarantee, this helps build trust and suggests that the team is committed to the project’s long-term success.
Unrealistic promises
Be cautious of projects that advertise exceptionally high returns or guaranteed profits. If a project claims support from well-known investors, companies, or influencers, those claims should be backed by credible proof, such as public announcements or confirmed partnerships.
How to Protect Yourself
While there is no guaranteed way to avoid every rug pull, there are some steps you can take to lower the risk:
Do your own research (DYOR)
Look beyond headlines, hype, or influencer promotions, and examine the project for yourself. A good way to start is by reading the project’s whitepaper to understand its goals, technology, and tokenomics. You can also use block explorers, like Etherscan or SolScan, to review token distribution, see if smart contract ownership has been renounced, and check transaction history for suspicious activity.
Check liquidity locks
Look into whether the project has locked its liquidity and for how long. Many legitimate projects use third-party services to manage liquidity locks, making the process more transparent and verifiable for investors.
Look for audits
Check whether the audit report is publicly available and ensure it is up to date, as older reports may not cover recent changes to the code. While an audit cannot guarantee complete safety, it can help identify common bugs, vulnerabilities, and potentially malicious code.
Stick to reputable platforms
When exploring new tokens or NFTs, choose platforms with a strong track record and rigorous vetting processes. Reliable platforms like Binance Launchpool apply strict evaluation criteria and conduct due diligence on project teams before listing. This significantly reduces the chances of encountering fraudulent or poorly managed projects.
Closing Thoughts
Rug pulls are an unfortunate part of the crypto space, especially in fast-moving areas like DeFi, where new projects launch every day. While many teams are building with good intentions, the lack of regulation and oversight still creates opportunities for bad actors to take advantage of unsuspecting users.
With the growing availability of tools, audits, and educational resources, identifying potential scams is becoming easier. However, it’s still important to conduct thorough research and approach every new project with caution and a critical mindset.
Further Reading
How Binance Fights Financial Crime
What Are Airdrop Scams and How to Avoid Them?
5 Ways to Improve Your Binance Account Security
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
A rug pull is a type of crypto scam where developers abandon a project and run off with investors' funds, leaving the project inactive or worthless.
These incidents often involve draining liquidity pools, exploiting vulnerabilities in smart contracts, or abandoning the project entirely.
Some common warning signs include unaudited code, anonymous teams, overly ambitious claims, and liquidity that can be easily removed.
Rug pulls are a strong reminder to always do your own research and stay alert before putting your money into any crypto project.
Introduction
If you’ve been in crypto for a while, you’ve probably seen this play out: a new token launches, the hype builds, the price climbs rapidly, and then everything crashes. The website is taken down, social media goes silent, and investors are left wondering what happened.
This type of exit scam is known as a rug pull and has led to millions in losses in the crypto space. Let’s take a closer look at how rug pulls work and what you can do to avoid falling for one.
What Is a Rug Pull?
A rug pull in crypto is a type of scam where the creators of a cryptocurrency project suddenly withdraw liquidity or abandon the project, leaving investors with worthless tokens. It’s like being invited to a group dinner, asked to split the bill upfront, and then watching the host disappear before anything arrives.
Rug pulls are similar to traditional pump-and-dump schemes, but they often use more complex tools like manipulating smart contracts or draining liquidity pools. These scams started becoming more common during the decentralized finance (DeFi) boom in 2020, when launching a token on a decentralized exchange (DEX) became fast, easy, and was largely unregulated. With minimal checks in place, it was easy for bad actors to exploit the system and take advantage of unsuspecting investors.
How Do Rug Pulls Work?
Rug pulls can happen in a few different ways. They can be technical (via malicious smart contract code) or non-technical (via social manipulation or centralized control). In some cases, it might be a combination of both.
1. Liquidity pool withdrawal
On decentralized exchanges (like Uniswap or PancakeSwap), tokens need liquidity pools so people can trade them. These pools let users swap tokens directly without relying on intermediaries.
Here’s how a typical rug pull unfolds:
A team launches a new token and adds it to a liquidity pool, usually paired with another token like ETH or USDT.
Early buyers jump in, causing the token’s price to rise and the pool to grow.
As more people buy in, the pool ends up holding a significant amount of valuable crypto.
Then, without warning, the developers pull out all (or most of) the liquidity they originally added.
With almost nothing left in the pool, the market collapses, and the token’s price drops close to zero.
This kind of rug pull is the most common and can happen within hours or days of a token launch.
2. Smart contract manipulation
In some cases, the rug pull is planned from the very beginning. Instead of exiting suddenly, the scam is embedded in the project’s code. Developers might add functions to the smart contract that allow them to:
Mint unlimited tokens, which floods the supply and causes the price to crash.
Stop users from selling their tokens using honeypot contracts. These smart contracts let people buy the token but prevent them from selling, making the tokens worthless.
Transfer tokens directly from users’ wallets without their consent.
These scams are especially hard to spot without a proper code audit. Even worse, some honeypot tokens are marked as “verified” to appear safe. But, in many cases, the malicious code is buried under complex logic, or only activates after enough people have invested.
3. The social rug
Not every rug pull involves complicated code. Some are built on trust, which is exactly what makes them so effective. These scams often start with a crypto project building excitement through social media, attracting a community, and getting shoutouts from influencers. It all seems legitimate, with a token or non-fungible token (NFT) launch that draws in investors.
But once enough people have invested, the team disappears without a trace. The project’s social media channels and website vanish along with the funds. If the project creators have full control over the token supply, these types of rug pulls may also happen on vulnerable launchpads or centralized platforms. In the end, it comes down to social manipulation and empty promises.
How to Spot a Potential Rug Pull
While not every project with these traits is a scam, spotting a few of these signs should raise a red flag. Here’s what to look out for:
Anonymous teams
While anonymity is part of crypto culture, projects with no transparency around their developers or founders are harder to hold accountable. That makes it easier for bad actors to disappear with investor funds.
No smart contract audit
Auditing or formally verifying a smart contract helps catch bugs, vulnerabilities, and unintended behavior before the code goes live. Without a review from a reputable security firm, hidden risks may remain, such as functions that allow unlimited token minting or give developers full control over the contract. Be careful with audits from shady or unknown security firms.
Unlocked liquidity
If a project doesn’t lock its liquidity or has no clear vesting schedule for the team’s tokens, there’s a higher risk that funds could be withdrawn or dumped on the market at any time.
Reputable projects often lock liquidity and implement vesting periods for team members, usually lasting between one and four years. While not a guarantee, this helps build trust and suggests that the team is committed to the project’s long-term success.
Unrealistic promises
Be cautious of projects that advertise exceptionally high returns or guaranteed profits. If a project claims support from well-known investors, companies, or influencers, those claims should be backed by credible proof, such as public announcements or confirmed partnerships.
How to Protect Yourself
While there is no guaranteed way to avoid every rug pull, there are some steps you can take to lower the risk:
Do your own research (DYOR)
Look beyond headlines, hype, or influencer promotions, and examine the project for yourself. A good way to start is by reading the project’s whitepaper to understand its goals, technology, and tokenomics. You can also use block explorers, like Etherscan or SolScan, to review token distribution, see if smart contract ownership has been renounced, and check transaction history for suspicious activity.
Check liquidity locks
Look into whether the project has locked its liquidity and for how long. Many legitimate projects use third-party services to manage liquidity locks, making the process more transparent and verifiable for investors.
Look for audits
Check whether the audit report is publicly available and ensure it is up to date, as older reports may not cover recent changes to the code. While an audit cannot guarantee complete safety, it can help identify common bugs, vulnerabilities, and potentially malicious code.
Stick to reputable platforms
When exploring new tokens or NFTs, choose platforms with a strong track record and rigorous vetting processes. Reliable platforms like Binance Launchpool apply strict evaluation criteria and conduct due diligence on project teams before listing. This significantly reduces the chances of encountering fraudulent or poorly managed projects.
Closing Thoughts
Rug pulls are an unfortunate part of the crypto space, especially in fast-moving areas like DeFi, where new projects launch every day. While many teams are building with good intentions, the lack of regulation and oversight still creates opportunities for bad actors to take advantage of unsuspecting users.
With the growing availability of tools, audits, and educational resources, identifying potential scams is becoming easier. However, it’s still important to conduct thorough research and approach every new project with caution and a critical mindset.
Further Reading
How Binance Fights Financial Crime
What Are Airdrop Scams and How to Avoid Them?
5 Ways to Improve Your Binance Account Security
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
editing superb 👌 🤣🤣🤣🤣
inshallah one day will become millionaire 😁
vitalik you should consider for erc20 network transaction timing its very slow.
Binance Academy
--
Who Is Vitalik Buterin?
Key Takeaways
Vitalik Buterin is a Russian-Canadian computer programmer and is best known as the creator of Ethereum.
Vitalik proposed Ethereum in 2013 to overcome the limitations of Bitcoin and support more complex applications through smart contracts.
He was an early contributor to the Bitcoin Magazine and continues to be a thought leader in the blockchain space.
His views often shape discussions around blockchain scalability, decentralization, and cryptoeconomics.
Introduction
Vitalik Buterin is widely known as the creator of Ethereum, the blockchain behind many of today’s decentralized applications and digital assets. Since publishing the Ethereum whitepaper at the age of 19, Vitalik has played a key role in the platform’s development and remains an influential figure in the blockchain space.
Early Life and Background
Vitalik Buterin was born in 1994 in Kolomna, Russia, and moved to Canada with his family at age six. Vitalik stood out for his natural talent in math and programming and was placed in a gifted program at school. He later attended the University of Waterloo, where he took advanced computer science classes and worked with cryptography experts like Ian Goldberg.
As a teenager, Vitalik was also a dedicated player of World of Warcraft (WoW). After a game update removed one of his favorite features, he felt powerless and was frustrated by how a central authority could make such changes at its will. This experience would spark his interest in decentralization, which would later become central to Ethereum.
First Encounter With Bitcoin
Vitalik first came across Bitcoin in 2011. While he was initially unsure about its value, he quickly became fascinated by its decentralized design and the possibilities it opened up for rethinking financial systems.
Wanting to learn more, he started writing about Bitcoin and eventually co-founded Bitcoin Magazine, one of the first major publications dedicated to cryptocurrency news and analysis. Through his writing and involvement in the community, Vitalik began to develop both a technical understanding and a broader philosophical perspective on blockchain technology.
He saw how Bitcoin enabled peer-to-peer transactions without intermediaries but also recognized its limitations. Vitalik felt that Bitcoin’s scripting language was too limited and began to imagine a more flexible blockchain that could support general-purpose programming.
The Birth of Ethereum
The Ethereum whitepaper
In 2013, at just 19 years old, Vitalik published the Ethereum whitepaper. His main idea was to build a blockchain that functioned like a global, decentralized computer.
While Bitcoin was designed primarily as a peer-to-peer currency, Ethereum would support a Turing-complete programming language. This would give developers the ability to write arbitrary logic in the form of smart contracts and create decentralized applications (DApps) that can operate without the need for central authorities.
Launch and development
Ethereum officially launched in July 2015 after a successful crowdfunding campaign that raised around $18 million worth of ether (ETH). Alongside Vitalik, co-founders such as Gavin Wood, Joseph Lubin, Charles Hoskinson, and others played key roles in building the protocol’s early infrastructure.
To support its ongoing development, the Ethereum Foundation, a nonprofit organization based in Switzerland, was established to coordinate and fund open-source contributions to the network.
Soon after launch, Ethereum began attracting developers interested in building a wide range of DApps. The ecosystem grew quickly, and Ethereum became the foundation for new sectors like decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs). Vitalik’s vision helped shift blockchain usage from a focus on digital currency to a broader range of use cases and decentralized innovation.
Ethereum Milestones and Vitalik’s Role
Over the years, Ethereum has gone through several defining moments that shaped its technical trajectory, community culture, and public perception. Vitalik has often played a key role during these events, whether as a technical leader, public communicator, or contributor to community governance.
The DAO attack (2016)
One of the earliest crises in Ethereum’s history came in 2016 with The DAO, a decentralized venture fund built on Ethereum. It raised over $150 million in ETH during its crowdsale, making it one of the most ambitious projects at the time.
However, a vulnerability in The DAO’s smart contract code was exploited, and roughly 3.6 million ether (worth around $50 million then) was siphoned off into a child DAO.
Vitalik proposed several mitigation paths, including a soft fork to blacklist the stolen funds. Ultimately, after significant community debate, the Ethereum Foundation supported a hard fork to roll back the exploit and return funds to the original DAO investors. This decision was controversial and led to a split:
Ethereum (ETH): The chain that implemented the rollback.
Ethereum Classic (ETC): The original chain that preserved immutability and rejected the fork.
The incident sparked a lot of debate about how decisions should be made on decentralized networks. It also challenged the idea that code alone could govern everything. Looking back, Vitalik said the DAO hack made it clear that rules written in code are not always enough and that sometimes human judgment and coordination are just as important.
The Merge: transition to Proof of Stake (2022)
Ethereum originally launched with a Proof of Work (PoW) consensus model, similar to Bitcoin. But the vision to move to a more sustainable and scalable Proof of Stake (PoS) system had been part of Ethereum’s long-term roadmap.
Vitalik played an active role in shaping this transition. He co-authored technical specifications and regularly participated in discussions on validator design, network security, and upgrade planning. Through blog posts, talks, and community engagement, he helped explain the transition’s purpose and implications to a broader audience.
After years of development, testing, and incremental upgrades, Ethereum successfully completed The Merge on September 15, 2022. This milestone marked the official switch to PoS and reduced the network’s energy consumption by more than 99%.
Public Persona and Thought Leadership
Vitalik remains one of the most influential voices in the Ethereum ecosystem. While he continues to guide protocol development by reviewing Ethereum Improvement Proposals (EIPs) and publishing research, his role has shifted throughout the years.
In April 2025, the Ethereum Foundation announced that Vitalik would gradually step back from daily coordination and crisis response duties to focus more fully on long-term research and innovation. This change would let him return to the exploratory work that shaped Ethereum’s early vision, while leaving day-to-day operations in the hands of other core contributors.
Outside of technical contributions, Vitalik is also known for his thoughtful writing and public commentary. His blog posts and social media threads often spark meaningful discussion not just about Ethereum’s future, but about the broader evolution of digital infrastructure and decentralized systems.
Vitalik is also active in the world of effective altruism and philanthropy. Over the years, he has donated millions to causes including COVID-19 relief, anti-aging research, and open-source development.
Criticism
As both the public face of Ethereum and a core contributor, Vitalik’s decisions and influence have often been scrutinized by different corners of the community.
One common concern is the extent of his influence. Although Ethereum is designed to be decentralized, some in the community argue that the project often leans too heavily on Vitalik’s guidance.
While Vitalik doesn’t control the network, his opinions can sway everything from protocol design to community sentiment. Vitalik himself has acknowledged this and taken a step back to encourage others to take the lead.
Vitalik’s openness to experimental ideas like Soulbound Tokens (SBT) or public goods has also drawn mixed reactions. While many admire his forward thinking, others feel Ethereum risks losing focus by trying to explore too much at once.
Despite this, Vitalik is known for engaging with critics in good faith. He rarely ignores tough questions and often uses them as opportunities to learn and improve personally and for the Ethereum ecosystem.
Closing Thoughts
Vitalik Buterin has played a central role in the development of Ethereum and the broader blockchain space. From technical design to public dialogue, his contributions have influenced how decentralized systems are built and understood.
Further Reading
What Is an Ethereum ETF?
What Is the Ethereum Pectra Upgrade?
Who Is Satoshi Nakamoto?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Vitalik Buterin is a Russian-Canadian computer programmer and is best known as the creator of Ethereum.
Vitalik proposed Ethereum in 2013 to overcome the limitations of Bitcoin and support more complex applications through smart contracts.
He was an early contributor to the Bitcoin Magazine and continues to be a thought leader in the blockchain space.
His views often shape discussions around blockchain scalability, decentralization, and cryptoeconomics.
Introduction
Vitalik Buterin is widely known as the creator of Ethereum, the blockchain behind many of today’s decentralized applications and digital assets. Since publishing the Ethereum whitepaper at the age of 19, Vitalik has played a key role in the platform’s development and remains an influential figure in the blockchain space.
Early Life and Background
Vitalik Buterin was born in 1994 in Kolomna, Russia, and moved to Canada with his family at age six. Vitalik stood out for his natural talent in math and programming and was placed in a gifted program at school. He later attended the University of Waterloo, where he took advanced computer science classes and worked with cryptography experts like Ian Goldberg.
As a teenager, Vitalik was also a dedicated player of World of Warcraft (WoW). After a game update removed one of his favorite features, he felt powerless and was frustrated by how a central authority could make such changes at its will. This experience would spark his interest in decentralization, which would later become central to Ethereum.
First Encounter With Bitcoin
Vitalik first came across Bitcoin in 2011. While he was initially unsure about its value, he quickly became fascinated by its decentralized design and the possibilities it opened up for rethinking financial systems.
Wanting to learn more, he started writing about Bitcoin and eventually co-founded Bitcoin Magazine, one of the first major publications dedicated to cryptocurrency news and analysis. Through his writing and involvement in the community, Vitalik began to develop both a technical understanding and a broader philosophical perspective on blockchain technology.
He saw how Bitcoin enabled peer-to-peer transactions without intermediaries but also recognized its limitations. Vitalik felt that Bitcoin’s scripting language was too limited and began to imagine a more flexible blockchain that could support general-purpose programming.
The Birth of Ethereum
The Ethereum whitepaper
In 2013, at just 19 years old, Vitalik published the Ethereum whitepaper. His main idea was to build a blockchain that functioned like a global, decentralized computer.
While Bitcoin was designed primarily as a peer-to-peer currency, Ethereum would support a Turing-complete programming language. This would give developers the ability to write arbitrary logic in the form of smart contracts and create decentralized applications (DApps) that can operate without the need for central authorities.
Launch and development
Ethereum officially launched in July 2015 after a successful crowdfunding campaign that raised around $18 million worth of ether (ETH). Alongside Vitalik, co-founders such as Gavin Wood, Joseph Lubin, Charles Hoskinson, and others played key roles in building the protocol’s early infrastructure.
To support its ongoing development, the Ethereum Foundation, a nonprofit organization based in Switzerland, was established to coordinate and fund open-source contributions to the network.
Soon after launch, Ethereum began attracting developers interested in building a wide range of DApps. The ecosystem grew quickly, and Ethereum became the foundation for new sectors like decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs). Vitalik’s vision helped shift blockchain usage from a focus on digital currency to a broader range of use cases and decentralized innovation.
Ethereum Milestones and Vitalik’s Role
Over the years, Ethereum has gone through several defining moments that shaped its technical trajectory, community culture, and public perception. Vitalik has often played a key role during these events, whether as a technical leader, public communicator, or contributor to community governance.
The DAO attack (2016)
One of the earliest crises in Ethereum’s history came in 2016 with The DAO, a decentralized venture fund built on Ethereum. It raised over $150 million in ETH during its crowdsale, making it one of the most ambitious projects at the time.
However, a vulnerability in The DAO’s smart contract code was exploited, and roughly 3.6 million ether (worth around $50 million then) was siphoned off into a child DAO.
Vitalik proposed several mitigation paths, including a soft fork to blacklist the stolen funds. Ultimately, after significant community debate, the Ethereum Foundation supported a hard fork to roll back the exploit and return funds to the original DAO investors. This decision was controversial and led to a split:
Ethereum (ETH): The chain that implemented the rollback.
Ethereum Classic (ETC): The original chain that preserved immutability and rejected the fork.
The incident sparked a lot of debate about how decisions should be made on decentralized networks. It also challenged the idea that code alone could govern everything. Looking back, Vitalik said the DAO hack made it clear that rules written in code are not always enough and that sometimes human judgment and coordination are just as important.
The Merge: transition to Proof of Stake (2022)
Ethereum originally launched with a Proof of Work (PoW) consensus model, similar to Bitcoin. But the vision to move to a more sustainable and scalable Proof of Stake (PoS) system had been part of Ethereum’s long-term roadmap.
Vitalik played an active role in shaping this transition. He co-authored technical specifications and regularly participated in discussions on validator design, network security, and upgrade planning. Through blog posts, talks, and community engagement, he helped explain the transition’s purpose and implications to a broader audience.
After years of development, testing, and incremental upgrades, Ethereum successfully completed The Merge on September 15, 2022. This milestone marked the official switch to PoS and reduced the network’s energy consumption by more than 99%.
Public Persona and Thought Leadership
Vitalik remains one of the most influential voices in the Ethereum ecosystem. While he continues to guide protocol development by reviewing Ethereum Improvement Proposals (EIPs) and publishing research, his role has shifted throughout the years.
In April 2025, the Ethereum Foundation announced that Vitalik would gradually step back from daily coordination and crisis response duties to focus more fully on long-term research and innovation. This change would let him return to the exploratory work that shaped Ethereum’s early vision, while leaving day-to-day operations in the hands of other core contributors.
Outside of technical contributions, Vitalik is also known for his thoughtful writing and public commentary. His blog posts and social media threads often spark meaningful discussion not just about Ethereum’s future, but about the broader evolution of digital infrastructure and decentralized systems.
Vitalik is also active in the world of effective altruism and philanthropy. Over the years, he has donated millions to causes including COVID-19 relief, anti-aging research, and open-source development.
Criticism
As both the public face of Ethereum and a core contributor, Vitalik’s decisions and influence have often been scrutinized by different corners of the community.
One common concern is the extent of his influence. Although Ethereum is designed to be decentralized, some in the community argue that the project often leans too heavily on Vitalik’s guidance.
While Vitalik doesn’t control the network, his opinions can sway everything from protocol design to community sentiment. Vitalik himself has acknowledged this and taken a step back to encourage others to take the lead.
Vitalik’s openness to experimental ideas like Soulbound Tokens (SBT) or public goods has also drawn mixed reactions. While many admire his forward thinking, others feel Ethereum risks losing focus by trying to explore too much at once.
Despite this, Vitalik is known for engaging with critics in good faith. He rarely ignores tough questions and often uses them as opportunities to learn and improve personally and for the Ethereum ecosystem.
Closing Thoughts
Vitalik Buterin has played a central role in the development of Ethereum and the broader blockchain space. From technical design to public dialogue, his contributions have influenced how decentralized systems are built and understood.
Further Reading
What Is an Ethereum ETF?
What Is the Ethereum Pectra Upgrade?
Who Is Satoshi Nakamoto?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Hey my Apple Pay can’t added 🥲
Fantom Foundation
--
Sonic Pay is here.
Get your own debit card on Apple or Google Pay and spend globally with $USDC on Sonic, powered by @RedotPay.
💳 https://www.soniclabs.com/sonicpay
Get your own debit card on Apple or Google Pay and spend globally with $USDC on Sonic, powered by @RedotPay.
💳 https://www.soniclabs.com/sonicpay
Wow 🤩
Fantom Foundation
--
Native USDC and CCTP V2 by @Circle are coming to Sonic.
Only vip loans. Or we have to use collateral.. If we have collecteral amount why we should buy a loan.. Lol
Crypto Revolution Masters
--
Binance Flexible Loan: Place New Loan Orders to Get Up to 3,888 USDC!
https://www.binance.com/en/support/announcement/bdf7c54e072c4ad480d6f2c5c9cb95d6
https://www.binance.com/en/support/announcement/bdf7c54e072c4ad480d6f2c5c9cb95d6
Where?
Quoted content has been removed
I don't get it
Fantom Foundation
--
Wanna shape the future of DeFAI?
We're seeking judges for a DeFAI hackathon on Sonic. If you're interested, message us or reply below.
Tag someone you'd love to see as a judge 👀
We're seeking judges for a DeFAI hackathon on Sonic. If you're interested, message us or reply below.
Tag someone you'd love to see as a judge 👀
What do you think about ETH should I open long ? Or put short ? $ETH so much confuesing
#eth #FutureTarding
#eth #FutureTarding
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