How Can Investors Detect Potential Red Flags for a Crypto Rug Pull?

Red flags include the lack of a locked liquidity pool, which means developers can withdraw funds anytime. Another sign is anonymous development teams, making accountability impossible.

Extremely high annual percentage yields (APYs) or unrealistic promises can signal a scam. Furthermore, look for a low percentage of the token supply held in the liquidity pool relative to the team's wallets, suggesting a high potential for a massive sell-off.