Skip to main content

What Is the Risk of “Rug Pulls” Specifically Related to New Token Single-Sided Pools?

In a new token single-sided pool, the risk of a rug pull is high. The project team can create a pool with their new token and a common token (like ETH).

If the team deposits a large amount of the common token and then withdraws it, or executes a malicious smart contract function, the new token's price plummets to near zero. Since the single-sided LP's asset may have been swapped for the collapsing token, the loss is near-total.

What Happens to My Investment If a Rebase Token’s Smart Contract Is Exploited?
How Do Decentralized Exchanges Differ from Centralized Exchanges in the Context of Rug Pulls?
What Is a “Smart Contract Exploit” and Its Financial Consequence?
How Does a Decentralized Autonomous Organization (DAO) Structure Help Prevent Rug Pulls?