How to Spot Rug Pulls Before They Happen

<p>A rug pull is a type of crypto scam where developers abandon a project and run away with investors' funds. It's called a "rug pull" because it's like having the rug pulled out from under you - sudden, devastating, and leaving you on the floor.</p> <h3>Types of Rug Pulls</h3> <ul> <li><strong>Hard Rug (Liquidity Removal):</strong> Developers remove all liquidity instantly, making tokens worthless</li> <li><strong>Soft Rug (Slow Drain):</strong> Team slowly sells tokens over time while maintaining appearance of legitimacy</li> <li><strong>Honeypot:</strong> Smart contract prevents selling, only allowing buys</li> <li><strong>Mint Function Exploit:</strong> Developers mint unlimited new tokens and dump them</li> <li><strong>Migration Rug:</strong> "Upgrade" to new contract, old tokens become worthless</li> </ul> <div style="background: linear-gradient(135deg, #f87171 0%, #ef4444 100%); padding: 20px; border-radius: 12px; margin: 20px 0;"> <h3 style="color: white; margin-top: 0;">💸 The Devastating Impact</h3> <ul style="color: white;"> <li>$7.8 billion stolen in rug pulls in 2021 alone</li> <li>Average rug pull steals $2.8 million</li> <li>44% of all crypto scams are rug pulls</li> <li>New rug pull happens every 20 minutes</li> <li>99% of victims never recover funds</li> </ul> </div> <h3>Famous Rug Pulls in History</h3> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Project</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Amount Stolen</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Method</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Squid Game Token</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">$3.4 million</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Honeypot + Liquidity removal</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">AnubisDAO</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">$60 million</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Liquidity drain</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Uranium Finance</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">$50 million</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Migration exploit</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Luna Yield</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">$6.7 million</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Soft rug over months</td> </tr> </tbody> </table>

<p>The smart contract is where most rug pulls hide their mechanisms. Here's what to look for:</p> <h3>1. Ownership Functions</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> // 🚨 DANGEROUS: Owner can disable selling function setTrading(bool _enabled) external onlyOwner { tradingEnabled = _enabled; } // 🚨 DANGEROUS: Owner can change fees to 100% function setFees(uint256 _fee) external onlyOwner { sellFee = _fee; // No maximum limit! } // 🚨 DANGEROUS: Owner can blacklist any address function blacklistAddress(address _addr) external onlyOwner { blacklisted[_addr] = true; } </pre> <h3>2. Hidden Mint Functions</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> // 🚨 RUG PULL ALERT: Hidden mint function function emergency(uint256 amount) external onlyOwner { _mint(owner(), amount * 10**18); } // 🚨 SCAM: Disguised mint function function rebase() external { totalSupply += totalSupply * 2; // Doubles supply! balances[owner()] += totalSupply; } </pre> <h3>3. Honeypot Mechanisms</h3> <div style="background: #fee2e2; padding: 15px; border-radius: 8px; margin: 20px 0;"> <h4>🍯 Common Honeypot Patterns</h4> <ul> <li><strong>Modifier tricks:</strong> _transfer only works for specific addresses</li> <li><strong>Hidden conditions:</strong> Selling disabled after certain block</li> <li><strong>Gas manipulation:</strong> Sell function uses infinite gas</li> <li><strong>Balance checks:</strong> Requires impossible conditions to sell</li> <li><strong>Time locks:</strong> Can only sell at specific times (that never come)</li> </ul> </div> <h3>4. Proxy Contract Dangers</h3> <ul> <li><strong>Upgradeable contracts:</strong> Can change rules after you buy</li> <li><strong>Hidden implementation:</strong> Real code not visible</li> <li><strong>External calls:</strong> Relies on other contracts that can change</li> <li><strong>Delegate calls:</strong> Can execute any code</li> </ul> <h3>Contract Audit Checklist</h3> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Check</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Safe</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Dangerous</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Ownership</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Renounced or multi-sig</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Single EOA wallet</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Mint Function</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">None or burned</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Active mint capability</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Trading Control</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Always enabled</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Can be paused</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Fee Changes</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Fixed or limited</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Unlimited changes</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Blacklist</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">No blacklist function</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Can blacklist addresses</td> </tr> </tbody> </table>

<p>Liquidity manipulation is the most common rug pull method. Here's how to analyze it:</p> <h3>1. Liquidity Lock Status</h3> <ul> <li><strong>🟢 Safe:</strong> Liquidity locked for 6+ months with reputable locker</li> <li><strong>🟡 Caution:</strong> Short lock period (< 3 months) or unknown locker</li> <li><strong>🔴 Danger:</strong> No lock or "trust me bro" promises</li> </ul> <h3>2. Liquidity Pool Analysis</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> Red Flags in Liquidity: - Less than $10k initial liquidity (easy to manipulate) - Liquidity/Market Cap ratio < 5% (no exit liquidity) - Single LP provider owns > 50% (can rug easily) - Liquidity decreasing over time (slow rug in progress) - Multiple small LP positions (fake decentralization) </pre> <h3>3. Token Distribution Warning Signs</h3> <div style="background: #fef3c7; padding: 15px; border-radius: 8px; margin: 20px 0;"> <h4>⚠️ Dangerous Distribution Patterns</h4> <ul> <li>Top 10 wallets hold > 50% of supply</li> <li>Developer wallet holds > 5% unlocked</li> <li>Marketing wallet > 10% with no vesting</li> <li>Team tokens not locked or vested</li> <li>Presale wallets concentrated in few addresses</li> <li>Dead wallet has < 10% of supply</li> </ul> </div> <h3>4. Tokenomics Red Flags</h3> <ul> <li><strong>Unlimited supply:</strong> Can mint infinite tokens</li> <li><strong>Rebase mechanism:</strong> Supply can change unpredictably</li> <li><strong>High taxes (>15%):</strong> Especially if changeable</li> <li><strong>Complex fee structure:</strong> Hidden ways to extract value</li> <li><strong>Reflection tokens:</strong> Often used to hide dumps</li> <li><strong>Auto-liquidity:</strong> Can be gamed by developers</li> </ul> <h3>5. Wallet Clustering Analysis</h3> <p>Look for connected wallets that suggest single entity control:</p> <ul> <li>Multiple wallets funded from same source</li> <li>Wallets created within minutes of each other</li> <li>Similar holding amounts (e.g., exactly 1M tokens each)</li> <li>Coordinated buying/selling patterns</li> <li>Wallets that only hold this one token</li> </ul> <h3>How to Check Liquidity Locks</h3> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Platform</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">How to Verify</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Trust Level</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Unicrypt</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Check on app.unicrypt.network</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">High</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">PinkLock</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Verify on pinklock.finance</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">High</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Team Finance</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Check team.finance</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Medium</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Burned LP</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Verify burn address</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Highest</td> </tr> </tbody> </table>

<p>The team behind a project and its community can reveal rug pull intentions:</p> <h3>1. Team Red Flags</h3> <ul> <li><strong>Anonymous team:</strong> No accountability if they run</li> <li><strong>Stock photos:</strong> Fake team members with AI-generated faces</li> <li><strong>No crypto history:</strong> LinkedIn created last week</li> <li><strong>Aggressive marketing:</strong> Promises of guaranteed returns</li> <li><strong>Deflecting questions:</strong> Ban users who ask about security</li> <li><strong>Previous rugs:</strong> Check wallet history for failed projects</li> </ul> <h3>2. Social Media Warning Signs</h3> <div style="background: #fee2e2; padding: 20px; border-radius: 8px; margin: 20px 0;"> <h4>🚩 Twitter/X Red Flags</h4> <ul> <li>Account created < 1 month ago</li> <li>Bought followers (check follower quality)</li> <li>Only retweets, no original content</li> <li>Disabled comments on posts</li> <li>Deleting negative comments</li> <li>Using stolen branding/logos</li> </ul> </div> <h3>3. Telegram/Discord Manipulation</h3> <ul> <li><strong>Bot members:</strong> 50k members but only 10 talking</li> <li><strong>Paid shillers:</strong> Same phrases repeated by multiple accounts</li> <li><strong>No criticism allowed:</strong> Instant bans for questions</li> <li><strong>Fake hype:</strong> Artificial excitement with no substance</li> <li><strong>Pinned messages only:</strong> No open discussion permitted</li> <li><strong>Voice chat theaters:</strong> Staged conversations</li> </ul> <h3>4. Website Analysis</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> Website Red Flags: - No whitepaper or roadmap - Whitepaper copied from other projects - Grammar errors and typos throughout - No audit reports or fake audits - Broken links and placeholder text - Domain registered days ago - No SSL certificate - Hosted on free platforms - Contact form doesn't work - Team section with stock photos </pre> <h3>5. Community Behavior Patterns</h3> <p>Legitimate vs. Scam Community Behaviors:</p> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Legitimate Community</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Rug Pull Community</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Organic growth over time</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Sudden explosion of members</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Diverse conversations</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Only price talk and hype</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Questions welcomed</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Questions lead to bans</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Transparent updates</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Vague promises</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Real user engagement</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Bot-like responses</td> </tr> </tbody> </table>

<p>Use these tools to analyze projects before investing:</p> <h3>1. Smart Contract Scanners</h3> <div style="background: #f0fdf4; padding: 20px; border-radius: 8px; margin: 20px 0;"> <h4>✅ Essential Analysis Tools</h4> <ul> <li><strong>Token Sniffer:</strong> Automated contract analysis (tokensniffer.com)</li> <li><strong>Honeypot.is:</strong> Tests if tokens can be sold</li> <li><strong>StaySAFU:</strong> Comprehensive security scanner</li> <li><strong>BSC Check:</strong> Binance Smart Chain analyzer</li> <li><strong>Solana RugCheck:</strong> Solana-specific scanner</li> </ul> </div> <h3>2. Liquidity Analyzers</h3> <ul> <li><strong>DexScreener:</strong> Real-time liquidity monitoring</li> <li><strong>DEXTools:</strong> Advanced pool analytics</li> <li><strong>Bubble Maps:</strong> Wallet connection visualization</li> <li><strong>Etherscan/BSCScan:</strong> Direct contract inspection</li> </ul> <h3>3. How to Use Token Sniffer</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> Step 1: Go to tokensniffer.com Step 2: Enter token contract address Step 3: Check the score (0-100) - 80-100: Generally safe - 50-79: Caution needed - 0-49: High risk Step 4: Review specific warnings: - Honeypot risk - Ownership not renounced - Liquidity not locked - High tax functions Step 5: Check similar contracts (often copies) </pre> <h3>4. Manual Verification Steps</h3> <ol> <li><strong>Contract verification:</strong> Check if source code is verified on explorer</li> <li><strong>Holder analysis:</strong> Look at top holders on blockchain explorer</li> <li><strong>Transaction history:</strong> Check developer wallet activities</li> <li><strong>Liquidity proof:</strong> Verify lock claims on locker platform</li> <li><strong>Audit verification:</strong> Confirm audit reports with audit firm</li> </ol> <h3>5. Community Research Tools</h3> <ul> <li><strong>Twitter Audit:</strong> Check follower quality (twitteraudit.com)</li> <li><strong>Similar Web:</strong> Analyze website traffic authenticity</li> <li><strong>Wayback Machine:</strong> Check if project existed before claimed</li> <li><strong>Google Reverse Image:</strong> Verify team photos aren't stock</li> <li><strong>GitHub:</strong> Check if development is actually happening</li> </ul> <h3>Tool Comparison Matrix</h3> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Tool</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Best For</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Cost</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Accuracy</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Token Sniffer</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Quick analysis</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Free</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">85%</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Honeypot.is</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Sell testing</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Free</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">95%</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">DEXTools</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Liquidity analysis</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Freemium</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">90%</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Manual audit</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Deep analysis</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Time</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">99%</td> </tr> </tbody> </table>

<p>Understanding the typical rug pull timeline helps you spot them early:</p> <h3>Phase 1: Setup (Days 1-7)</h3> <ul> <li><strong>Day 1-2:</strong> Create token, website, social media</li> <li><strong>Day 3-4:</strong> Start marketing, paid influencers contact</li> <li><strong>Day 5-6:</strong> Build fake community with bots</li> <li><strong>Day 7:</strong> Generate initial hype, presale announcement</li> </ul> <h3>Phase 2: Launch (Days 8-14)</h3> <ul> <li><strong>Day 8:</strong> Presale with "limited spots" FOMO</li> <li><strong>Day 9-10:</strong> Show fake presale success</li> <li><strong>Day 11:</strong> Launch on DEX with minimal liquidity</li> <li><strong>Day 12-13:</strong> Pump price with wash trading</li> <li><strong>Day 14:</strong> Peak hype, maximum shilling</li> </ul> <h3>Phase 3: The Pull (Days 15-21)</h3> <div style="background: linear-gradient(135deg, #f87171 0%, #ef4444 100%); padding: 20px; border-radius: 12px; margin: 20px 0;"> <h3 style="color: white;">🎭 The Final Act</h3> <ul style="color: white;"> <li><strong>Day 15-16:</strong> Team starts selling quietly</li> <li><strong>Day 17-18:</strong> "Technical issues" or "hack" announced</li> <li><strong>Day 19:</strong> Liquidity removed or massive dump</li> <li><strong>Day 20:</strong> Social media goes silent</li> <li><strong>Day 21:</strong> Website offline, team disappears</li> </ul> </div> <h3>Early Warning Signs Timeline</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> 24 hours before rug: - Unusual wallet activity from team - Sudden change in community tone - Technical "problems" mentioned - Delayed announcements 12 hours before rug: - Large wallets moving to exchanges - Liquidity slowly decreasing - Team members less active - Removal of roadmap items 1 hour before rug: - Multiple transactions from dev wallet - Social media posts deleted - Admins leaving Telegram - Website updates stopped </pre> <h3>Post-Rug Behavior</h3> <ul> <li>Team claims they were "hacked"</li> <li>Blames community for "FUD"</li> <li>Promises to "make it right" (they won't)</li> <li>Creates new token for "compensation" (another rug)</li> <li>Disappears completely within 48 hours</li> </ul>

<p>Let's analyze real rug pulls to understand the patterns:</p> <h3>Case Study 1: Squid Game Token (SQUID)</h3> <div style="background: #fef3c7; padding: 20px; border-radius: 8px; margin: 20px 0;"> <h4>🦑 The Setup</h4> <ul> <li>Launched during Squid Game Netflix hype</li> <li>Claimed to be play-to-earn game token</li> <li>Massive media coverage from BBC, CNBC</li> <li>Price went from $0.01 to $2,856 in one week</li> </ul> <h4>🚩 Red Flags Ignored</h4> <ul> <li>Honeypot: Users couldn't sell tokens</li> <li>Whitepaper full of errors</li> <li>Anonymous team</li> <li>No actual game existed</li> </ul> <h4>💥 The Rug</h4> <ul> <li>Developers cashed out $3.4 million</li> <li>Price crashed to $0 in 5 minutes</li> <li>Website and social media deleted</li> <li>Investors lost everything</li> </ul> </div> <h3>Case Study 2: AnubisDAO</h3> <ul> <li><strong>The promise:</strong> "Fork of OlympusDAO" with high APY</li> <li><strong>The hype:</strong> Raised $60M in 20 hours</li> <li><strong>The red flags:</strong> No code, no documentation, anonymous team</li> <li><strong>The rug:</strong> All funds drained to single wallet</li> <li><strong>The aftermath:</strong> Investors organized but funds never recovered</li> </ul> <h3>Case Study 3: Uranium Finance</h3> <ul> <li><strong>The cover:</strong> Legitimate-looking yield farm on BSC</li> <li><strong>The operation:</strong> Ran for 2 weeks building trust</li> <li><strong>The exploit:</strong> "Migration" to V2 with malicious code</li> <li><strong>The damage:</strong> $50M stolen during migration</li> <li><strong>The lesson:</strong> Even "established" projects can rug</li> </ul> <h3>Common Patterns Across All Rugs</h3> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Pattern</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Frequency</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Why It Works</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Anonymous team</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">95%</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">No accountability</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">FOMO marketing</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">100%</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Bypasses logic</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Technical complexity</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">80%</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Hides malicious code</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Time pressure</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">90%</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Prevents research</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Fake partnerships</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">70%</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">False credibility</td> </tr> </tbody> </table>

<p>Use this comprehensive checklist before investing in any project:</p> <h3>Smart Contract Security</h3> <div style="background: #f0fdf4; padding: 20px; border-radius: 8px; margin: 20px 0;"> <h4>✓ Must-Check Items</h4> <ul> <li>□ Contract source code verified on explorer</li> <li>□ No mint function OR mint function burned</li> <li>□ Ownership renounced OR multi-sig wallet</li> <li>□ No pause/blacklist functions</li> <li>□ Fees cannot be changed OR have maximum limits</li> <li>□ No hidden functions in contract</li> <li>□ Passed automated security scanners</li> <li>□ Can buy AND sell in test transaction</li> </ul> </div> <h3>Liquidity Safety</h3> <ul> <li>□ Liquidity locked for minimum 6 months</li> <li>□ Lock verified on reputable platform</li> <li>□ Sufficient liquidity (>5% of market cap)</li> <li>□ No single wallet owns majority of LP</li> <li>□ Liquidity not decreasing over time</li> </ul> <h3>Team Verification</h3> <ul> <li>□ Team members have real identities</li> <li>□ LinkedIn profiles > 1 year old</li> <li>□ Previous crypto project experience</li> <li>□ No history of failed/rugged projects</li> <li>□ Responsive to community questions</li> </ul> <h3>Token Distribution</h3> <ul> <li>□ No wallet holds > 5% (except burn/lock)</li> <li>□ Team tokens locked/vesting</li> <li>□ Marketing wallet has spending limits</li> <li>□ No suspicious wallet clustering</li> <li>□ Holder count growing organically</li> </ul> <h3>Community and Marketing</h3> <ul> <li>□ Organic community growth</li> <li>□ Real engagement, not just price talk</li> <li>□ Questions and criticism allowed</li> <li>□ No paid influencer pumping</li> <li>□ Realistic promises, not "1000x guaranteed"</li> </ul> <h3>Project Fundamentals</h3> <ul> <li>□ Clear use case or purpose</li> <li>□ Realistic roadmap</li> <li>□ Original whitepaper</li> <li>□ Active development (check GitHub)</li> <li>□ Professional website and materials</li> </ul> <h3>Quick Risk Assessment Score</h3> <pre style="background: #1e1e1e; color: #fff; padding: 15px; border-radius: 8px; overflow-x: auto;"> Score each item 0-2 points: 0 = Red flag / Missing 1 = Questionable / Partial 2 = Good / Complete Total Score Interpretation: 40-50: Lower risk (still not zero!) 30-39: Moderate risk 20-29: High risk 0-19: Extreme risk - likely rug pull Remember: Even perfect scores don't guarantee safety! </pre>

<p>If you've fallen victim to a rug pull, here's what to do:</p> <h3>Immediate Actions (First 24 Hours)</h3> <ol> <li><strong>Document everything:</strong> Screenshots, transaction hashes, wallet addresses</li> <li><strong>Try to sell:</strong> Sometimes partial liquidity remains</li> <li><strong>Revoke approvals:</strong> Prevent further access to your wallet</li> <li><strong>Report to platforms:</strong> DEX, social media, CMC/CoinGecko</li> <li><strong>Alert community:</strong> Warn others immediately</li> </ol> <h3>Evidence Collection</h3> <ul> <li>Transaction history from blockchain explorer</li> <li>Screenshots of website, social media, Telegram</li> <li>Contract address and deployer wallet</li> <li>Marketing materials and promises made</li> <li>Communication with team members</li> <li>Influencer promotion posts</li> </ul> <h3>Reporting Channels</h3> <table style="width: 100%; border-collapse: collapse; margin: 20px 0;"> <thead> <tr style="background: #f3f4f6;"> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Platform</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">What to Report</th> <th style="padding: 12px; text-align: left; border: 1px solid #e5e7eb;">Action Taken</th> </tr> </thead> <tbody> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">IC3 (FBI)</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Large losses (>$10k)</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Investigation</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">FTC</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Consumer fraud</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Database entry</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">CoinMarketCap</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Scam tokens</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Warning/Delisting</td> </tr> <tr> <td style="padding: 12px; border: 1px solid #e5e7eb;">Etherscan</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Malicious contracts</td> <td style="padding: 12px; border: 1px solid #e5e7eb;">Warning label</td> </tr> </tbody> </table> <h3>Recovery Options (Usually Limited)</h3> <ul> <li><strong>Class action:</strong> Join with other victims if losses are large</li> <li><strong>Blockchain analysis:</strong> Trace funds (expensive, low success)</li> <li><strong>Insurance claim:</strong> If you have crypto insurance</li> <li><strong>Tax write-off:</strong> Claim as capital loss</li> </ul> <div style="background: #fee2e2; padding: 20px; border-radius: 8px; margin: 20px 0;"> <h3>⚠️ Avoid Recovery Scams</h3> <p>After being rugged, you'll be targeted by "recovery" scammers who claim they can get your funds back. They can't. Signs of recovery scams:</p> <ul> <li>Unsolicited contact claiming to help</li> <li>Asking for upfront payment</li> <li>Requesting private keys</li> <li>Promising guaranteed recovery</li> <li>"Hackers" who can reverse transactions</li> </ul> </div> <h3>Psychological Recovery</h3> <ul> <li>Accept the loss - don't chase it with more risky trades</li> <li>Learn from the experience</li> <li>Share your story to help others</li> <li>Take a break from crypto if needed</li> <li>Seek support if the loss impacts mental health</li> </ul>