What Is a ‘Rug Pull’ in the Context of a Cryptocurrency Project?

A 'rug pull' is a malicious maneuver in the crypto space where the project's developers suddenly drain all the liquidity from a decentralized exchange (DEX) pool and abandon the project. This leaves investors with worthless tokens they cannot sell, resulting in a total loss.

It is a common form of exit scam often seen with new, unaudited tokens.