How Can Investors Check a Token’s Contract for Potential ‘Rug Pull’ Functions?
Investors can check a token's smart contract code on a block explorer for functions that could enable a rug pull. Key red flags include 'mint' functions (allowing infinite token creation), 'burn' functions with a non-zero fee, or a 'setTax' function that can be changed by the developer to a very high rate.
Professional audits also check for these vulnerabilities.