A rug pull in the cryptocurrency world occurs when the developers or creators of a project suddenly withdraw liquidity, or scam investors, leaving them with worthless assets.
There are many types of rug pulls each with its own method of execution, in this article we will try to explain 20 types of different rug pulls along with providing information on how each one is performed.
Liquidity Rug Pull
A liquidity rug pull is a scam in the cryptocurrency and DeFi space where developers abruptly withdraw liquidity from a token’s trading pool, causing its value to collapse. Scammers create a token, pair it with a popular cryptocurrency in a decentralized exchange (DEX), and attract investors through marketing or false promises. As the token’s price rises and the liquidity pool grows, the developers drain the pool, leaving investors unable to sell their tokens.
Developer Rug Pull
A developer rug pull is a type of crypto scam where project developers exploit their control over a blockchain project to defraud investors. This typically involves malicious actions like minting excessive tokens, dumping pre-mined tokens, or manipulating governance mechanisms to siphon funds. These scams occur in projects with unchecked developer authority, unaudited code, or deceptive practices. As a result, the token’s value collapses, leaving investors with significant losses.
Smart Contract Rug Pull
A smart contract rug pull is a scam in crypto where malicious developers exploit vulnerabilities in a project’s smart contract to defraud investors. Typically, developers embed hidden backdoors in the contract’s code, enabling them to withdraw funds, mint unlimited tokens, or manipulate tokenomics. Once the scam is executed, the token’s value collapses, leaving investors with worthless assets. These scams often target decentralized exchanges (DEXs) and new projects with unaudited contracts.
Presale Rug Pull
A presale rug pull is when developers sell tokens to investors during a presale phase, promising future growth or utility, and then abandon the project after collecting funds. In these scams, developers often create hype through marketing, fake partnerships, or unrealistic claims to attract buyers. Once the presale concludes and funds are raised, the developers disappear, leaving investors with worthless tokens and no active project.
Pump And Dump Rug Pull
A pump and dump rug pull is a type of cryptocurrency scam where developers or insiders artificially inflate a token’s price (“pump”) through misleading marketing, hype, or coordinated buying. This creates a frenzy of interest, attracting unsuspecting investors. Once the price peaks, the scammers sell off their large holdings (“dump”), causing the token’s value to plummet and leaving investors with significant losses. These schemes often target low-cap or newly launched tokens, exploiting the lack of regulation in the crypto market.
Exit Scam Rug Pull
An exit scam rug pull is a fraudulent scheme in the cryptocurrency and blockchain space where developers abandon a project after collecting substantial funds from investors. Typically, scammers launch a token or DeFi project, build trust through marketing and promises of future utility, and attract significant investment. Once they amass enough funds, they abruptly “exit” by shutting down the project, draining funds, or disappearing entirely. This leaves investors with worthless tokens and no recourse.
Token Burn Rug Pull
A token burn rug pull is a deceptive scam in the cryptocurrency space where developers burn a portion of a token’s supply to create the illusion of scarcity and trust. Burning tokens, often through publicized wallet transactions, is intended to reassure investors that the developers cannot access or manipulate these tokens. However, in a rug pull, the developers retain control over other key aspects, such as hidden liquidity or minting mechanisms. Once investor confidence grows and funds flow in, the scammers withdraw liquidity or dump remaining tokens, causing the price to collapse.
Airdrop Rug Pull
An airdrop rug pull is a crypto scam where scammers use free token giveaways, known as airdrops, to lure investors into a fraudulent project. Initially, the tokens are distributed to users, creating buzz and a false sense of legitimacy. Once these tokens gain traction and attract buyers, the scammers either dump their large holdings or drain the project’s liquidity pool, causing the token’s value to crash. Airdrop rug pulls often exploit the excitement around free rewards to conceal malicious intentions.
Validator / Mining Pool Rug Pull
A validator or mining pool rug pull is a cryptocurrency scam where operators of staking or mining pools exploit users’ trust to steal their funds or rewards. In staking, users delegate tokens to validators who promise returns, while in mining, participants join a pool to combine computational power. In a rug pull, the operator abruptly ceases operations, absconds with staked assets, mining rewards, or fees. This often happens in unregulated or newly established pools.
Developer Wallet Whitelist Rug Pull
A Developer Wallet Whitelist Rug Pull is a crypto scam where project developers manipulate a token’s whitelist system to ensure they can profit while leaving investors at a loss. In these scams, developers allow only certain addresses (often their own) to be whitelisted for early token purchases or exclusive access to a project. Once the project gains hype and investors buy in, developers use their whitelist privileges to sell or dump their holdings, causing the token’s value to collapse.
FOMO Rug Pull
A FOMO (Fear of Missing Out) rug pull is a cryptocurrency scam where developers create a sense of urgency and excitement to push investors into making hasty, ill-informed decisions. Scammers use aggressive marketing tactics, social media hype, or false promises of massive gains to create FOMO, driving investors to buy tokens quickly without conducting proper research. Once the price rises and enough funds are collected, the developers execute the rug pull by draining liquidity or selling their holdings, causing the token’s value to crash.
Exchange Exit Rug Pull
An Exchange Exit Rug Pull occurs when a cryptocurrency exchange, either centralized or decentralized, is used to scam investors by abruptly shutting down or disappearing with user funds. In this scam, the exchange attracts users by offering competitive features, low fees, or lucrative tokens, then suddenly halts withdrawals, or the exchange disappears entirely. Investors are left unable to access their funds, and the platform’s operators vanish with the collected assets.
Governance Rug Pull
A Governance Rug Pull is a scam in decentralized projects where the developers exploit the governance system to manipulate decisions in their favor, leading to financial loss for investors. In these projects, token holders have voting power to influence decisions, such as fund allocation or changes in protocol. Scammers use their control over governance tokens or smart contract vulnerabilities to pass self-serving proposals, such as draining the project’s treasury or redirecting funds to their wallets.
Fake Partnerships Rug Pull
A Fake Partnerships Rug Pull is a scam where developers deceive investors by falsely claiming partnerships or assembling a fake team to boost the credibility of a cryptocurrency project. Scammers often create professional-looking websites, use well-known logos, or name-drop reputable companies and individuals to build trust. Once investors are convinced and funds flow in, the scammers abandon the project, taking the invested funds with them.
Token Supply Rug Pull
A Token Supply Manipulation Rug Pull is a crypto scam where developers manipulate the token supply to deceive investors and profit at their expense. Scammers often control key aspects of the token’s smart contract, allowing them to mint additional tokens, inflate supply, or change tokenomics after launch. This manipulation leads to a sudden devaluation of the token, causing significant losses for investors.
Liquidity Mining Rug Pull
A Liquidity Mining Rug Pull is a scam where developers exploit liquidity mining programs to steal funds from investors. In liquidity mining, users provide liquidity to a decentralized platform in exchange for rewards, typically in the form of new tokens. Scammers create fake or poorly designed liquidity mining projects, attracting users with high yields or rewards. Once enough liquidity is provided, the developers withdraw the funds or drain the liquidity pool, causing the token’s value to crash and leaving investors with worthless assets.
Token Lockup Rug Pull
A Token Lockup Rug Pull is a scam where developers promise a lockup period for their tokens, creating a false sense of security for investors. In a typical lockup, tokens are locked for a set period to prevent early selling or dumping. However, scammers may manipulate the lockup mechanism or provide false assurances, allowing them to unlock or sell tokens early. After the lockup period ends, developers can dump their holdings, causing the token’s value to crash.
NFT Rug Pull
An NFT Rug Pull is a scam in the non-fungible token (NFT) space where developers create and sell NFTs with false promises of value, utility, or rarity, only to abandon the project after collecting funds. Scammers often hype up the NFTs using social media, influencer endorsements, or fake roadmaps to attract buyers. Once the NFTs are sold, the developers disappear, leaving investors with worthless tokens and no active project.
Phantom Product Rug Pull
A Phantom Product Rug Pull is a scam where developers create a cryptocurrency or DeFi project around a fake or non-existent product or service. They attract investors by claiming to offer innovative solutions, tools, or services, often with flashy marketing, a professional website, or fake testimonials. Once investors buy into the project, the developers disappear or stop all development, leaving behind only the empty promise of a product. Investors are left with worthless assets, and the project is abandoned.
Yield Farming Rug Pull
A Yield Farming Rug Pull is a scam where developers lure investors into high-yield farming schemes with promises of exceptional annual percentage rates (APRs) or returns. In yield farming, users provide liquidity to a platform in exchange for rewards, typically in the form of tokens. Scammers offer unsustainably high APRs to attract large investments. Once enough funds are gathered, the developers pull liquidity or drain funds from the platform, causing the token’s value to collapse and leaving investors with worthless assets.