How Can Investors Check If a token’S Liquidity Is’locked’?

Investors should check the smart contract address of the liquidity pool on a blockchain explorer. They look for evidence that the LP tokens, which represent the deposited liquidity, have been sent to a time-lock contract or a burn address.

A reputable project will 'lock' or 'burn' a significant portion of the liquidity for a long period, preventing the developers from pulling it out. The absence of a lock or burn is a major red flag for a potential rug pull.