Skip to main content
Learn

What Is a “Rug Pull” in the Context of an ICO?

Developers raise funds, artificially inflate the token price, then drain the liquidity pool and vanish with investor money.
Greeks.Live17.11.25

What Is a “Rug Pull” in the Context of an ICO?

A rug pull is a malicious maneuver where cryptocurrency developers abandon a project and run away with investors' funds, typically raised through an Initial Coin Offering or liquidity pool. It often occurs after the token's price is inflated due to hype and initial investment.

The developers drain the liquidity pool, causing the token's value to plummet instantly. This scam is a significant risk in the unregulated DeFi and ICO space.

How Does a “Rug Pull” Differ from a “Pump and Dump” in the Crypto Space?
What Is the Risk of “Rug Pull” in the Context of Providing Liquidity to a New Token Pair?
Explain the Risk of ‘Rug Pull’ in the Context of New, Unaudited Liquidity Pools
What Is a “Rug Pull” and How Does It Relate to Contract Immutability?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.