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How Do Decentralized Exchanges (DEXs) Make Rug Pulls Possible?

Permissionless token creation and liquidity pooling, coupled with anonymity and lack of central vetting.
Greeks.Live28.10.25

How Do Decentralized Exchanges (DEXs) Make Rug Pulls Possible?

DEXs, especially those using AMMs, allow anyone to create a token and pair it with a major token like ETH or a stablecoin in a liquidity pool without central vetting. This permissionless nature means malicious actors can easily launch a scam token.

The lack of KYC and central oversight allows developers to remain anonymous, making it easy to perform the pull and disappear with the funds.

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What Is a “Rug Pull” and How Does It Relate to Contract Immutability?

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