2026-01-06 14:23:20

Understanding Rug Pulls: A Must-Know for Altcoin Investors

If you're exploring the altcoin space, here's something critical you need to understand—rug pulls. These scams happen when project developers abandon a token and disappear with investor funds, leaving holders with worthless assets.

How do they typically work? Developers hype up a new altcoin, attract liquidity and investment, then suddenly drain the liquidity pools and vanish. By then, the token price crashes to zero.

Red flags to watch:
- Anonymous team with no verifiable history
- Promises of guaranteed returns or unrealistic gains
- Locked liquidity pools that suddenly unlock
- Heavy promotion with minimal actual utility
- Contracts with backdoor functions allowing fund transfers

Now you know. Share this with anyone just entering crypto—awareness is the best defense against these threats in the altcoin market.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
7
Repost
Share

Comment

0/400

SchrodingerWallet

· 01-08 23:13

Another failed project by an anonymous team, I knew it would turn out like this... I've seen it too many times --- Rug pulls are really unpredictable; you still have to do your homework --- Does anyone still believe in the nonsense of "guaranteed returns"? It's truly ridiculous --- When liquidity pools suddenly unlock, you should run; that's a painful lesson --- I've told my friends about this setup long ago, but some people don't listen, and then... you know what happens --- Backdoor functions are something you need to learn to identify; contract audits are really crucial --- Anonymous teams + exaggerated promotion, basically a casino, I won't touch it --- It's always the same story, changing names and aliases to keep scamming; the ecosystem really needs cleaning up --- In reality, there are no real projects, just hype about NB; what kind of trash coin is this? --- Awareness is the most important... but honestly, many people are just greedy; no matter how much you remind them, it's useless

View OriginalReply0

DeadTrades_Walking

· 01-08 03:45

Another guy got rug-pulled? This cycle is really next level. --- Anonymous team, promises of unlimited returns, sudden liquidity unlock... old tricks, should have learned by now. --- People keep falling into this trap every day, but they just won't listen. --- Come on, do people really believe in the "guaranteed returns" bullshit? --- You can instantly judge by looking at the contract's backdoor functions. If you're too lazy to check, you deserve to get cut. --- Newcomers must read before entering the circle, or else they'll face a bloody lesson. --- Liquidity is unlocked and they run immediately. Even in 2024, people still fall for this trick. --- No real use, crazy marketing, mysterious team... isn't this just a standard rug pull template? --- My friend was scammed out of five figures like this. Now I doubt everything I see. --- Anonymous + no history records, just pass. Not worth gambling.

View OriginalReply0

AirdropFatigue

· 01-07 03:18

Another article about rug pulls... It's a common topic, but it really needs to be emphasized again—newcomers are truly easy to fall for. Anonymous teams + empty promises... When these two red flags appear, I just run. I've seen too many of these scams before; it's a pity for those who went all in.

View OriginalReply0

GasGuru

· 01-06 14:53

Here we go again with the rug pull... Brothers, you really need to wake up. Anonymous team + guaranteed returns, this combo is an immediate exit. --- As soon as the liquidity pool is unlocked, I knew it was going to be the end. I've seen this trick too many times. --- NGL, every time they hype it up and then run away, the contract even hides a backdoor... Damn, it's a den of thieves. --- Really, this is a must-read for beginners. Don't get wrecked and lose everything, even your underwear. --- Always getting cut like this every day. When will it end... Feels like rug pulls are more terrifying than a bear market. --- I dislike the anonymous team the most. Not even daring to show their face and still want my money? --- Already shared this with beginner friends. If you ignore the warning... good luck to you. --- Zero utility and still able to raise funds, how much hype do you need to pull that off?

View OriginalReply0

ColdWalletGuardian

· 01-06 14:52

Another anonymous team, air coins, crazy promotion... what else can it be? All just tricks. --- Liquidity lock suddenly lifted? Isn't that just saying some coin, lol. --- NGTLike these reminders need to be sent every week, but people still get scammed. --- The real red flag is one thing: you don't even know the developers. --- I blacklist projects promising guaranteed returns, no discussion needed. --- Honestly, does anyone still believe in "utility"? It's all just deceptive rhetoric. --- Listen up everyone: anonymous + heavy promotion = your money flying away. --- Contract has backdoor functions? Uh... how did I not think of that? --- It's always the same routine, people keep falling for it, it's pretty surreal. --- Instead of saying defense, just don't be greedy, that's all.

View OriginalReply0

WalletWhisperer

· 01-06 14:46

ngl the liquidity unlock pattern is where the real tells are... whales know this dance better than anyone. watched three wallets cluster around identical timestamp intervals last week, statistical anomaly screaming loud. rug pulls aren't random—they're choreographed market inefficiencies masquerading as chaos.

Reply0

staking_gramps

· 01-06 14:36

You really can't get tired of the rug pull thing... Every week there's a new trick, and projects that haven't passed contract audits are still bragging about it.

View OriginalReply0