• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Coinbase Seeks US Approval to Launch Tokenized Stocks, Details
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Coinbase Seeks US Approval to Launch Tokenized Stocks, Details
Rug pull

Rug Pull: Don’t Be Fooled! Here Are 5 Ways To Detect If Someone’s About To Scam You

Christian Encila
by Christian Encila
3 years ago
·
Posted in Crypto News, NFT
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Last October, a rug pull devastated investors eager to make money from cryptocurrency token “SQUID,” named after the popular Netflix show Squid Game.

With its bandwagon hype, the token’s value skyrocketed by a whopping 23,000,000% to $2,862 within a week. It took less than five minutes though before the value rapidly plummeted to $0.0007926 as the developers embezzle almost $3.4 million from their investors. 

The SQUID scam is now a cautionary tale for many crypto enthusiasts as rug pulls of the same kind are becoming greater in number.

What’s A Rug Pull?

A “rug pull” refers to a cryptocurrency scam in which developers abandon a project and run away with investor money.

Initially, developers will launch a project which looks legitimate and has a lot of potential – from social media presence, advertisement, and documents. Once they’ve gained the trust of investors and the general project, they will pool the investment fund, banking on bandwagon hype. The next thing you know, they go incommunicado and abandon the project. Goodbye, money.  

Related Reading | Propelled By Rug Pulls, Crypto Scams Rise 81% In 2021

Below, we listed five ways you can spot a rug pull and save yourself from losing your hard-earned moolah.

1. Check The Profile Of Developers

First and foremost, potential crypto investors must check on the credibility of the people behind the projects. 

Do the developers have a track record in the crypto community? Is the development team composed of reliable crypto programmers? Is the quality of the project’s whitepaper, website, and advertisements dependable? In other words – are they legit?

Stay away from anonymous developers since projects like these involve hefty amounts of money.

2. Examine The Liquidity Locked

After checking for the project creators’ profile, look if the crypto currency is liquidity locked. 

Liquidity is locked through smart contracts, which usually spans up to five years from the token’s initial bidding. While some personally script time locks, third-party lockers are usually hired to ascertain clients of the project’s legitimacy.

Without the lock on the token supply, developers can easily run away from the investment, leaving no trace behind.

Total crypto market cap at $1.93 trillion in the daily chart | Source: TradingView.com

3. Beware Of Sketchy High Yields

If something sounds too unrealistically profitable, just trust your instincts. If it’s not a rug pull, then it’s likely a Ponzi scheme. 

As in every investment, high yields translate to high risk. An annual percentage yield (APY) beyond the hundreds does not automatically mean that it’s a scam, but you should be cautious of them.

4. Limits On Sell Orders

Scammers usually code a crypto to put a cap on the selling capacity of selected investors. Selling limits are usually buried in obscure code, so it is not the easiest to identify one.

To figure this out, try to purchase a small amount of the new token and then attempt to sell it right after. If there is a limit, it’s a scam.

5. No External Audit

All cryptocurrency projects are required to formally submit an audit process conducted by an independent third party to prove their legitimacy.

Aside from finance, code audits must check the contract for hidden terms or scrappy security features. 

Be Smart, Keep Safe 

Be careful when investing on cryptocurrency. We’ve all heard what the sages have always said about something being “too good to be true.”

Related Reading | Binance CEO Changpeng Zhao Warns Users Of SMS Phishing Scam

Image from Coinfomania, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christian Encila

Christian Encila

Follow

Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.

Full Profile

Related Posts

Crypto

Trump’s Crypto Wealth Estimated Near $1 Billion In White House Report

5 hours ago
Want to Make Crypto Millions Like Trump? These 3 Top Altcoins Could Be Your Chance

Want to Make Crypto Millions Like Trump? These 3 Top Altcoins Could Be Your Chance

4 hours ago
Tron to Launch on Nasdaq via Reverse Merger – New Crypto Like BTC Bull Token to Soar 100x?

Tron to Launch on Nasdaq via Reverse Merger – New Crypto Like BTC Bull Token to Soar 100x?

4 hours ago
JPMorgan Stablecoin Rumors Drive Up Crypto Market—Plus, 3 Crypto Presales to Watch.

JPMorgan Stablecoin Rumors Drive Up Crypto Market—Plus, 3 Crypto Presales to Watch

4 hours ago
CoinShares Files for Spot Solana ETF, Proposes Staking Integration

CoinShares Files for Spot Solana ETF, Proposes Staking Integration

23 hours ago
Key Solana Investor Surges 20% as Hype Builds for SOL Layer 2 Solaxy Launch

Key Solana Investor Surges 20% as Hype Builds for SOL Layer 2 Solaxy Launch

8 hours ago
Please login to join discussion

Premium Sponsors

Press Releases

  • bowminer

    Shocking! Bow Miner cloud mining income revealed: XRP earns...

    56 minutes ago
  • LandDAO to Bring Land NFTs Backed by Real-World Assets...

    1 hour ago
  • Binance user reveals: How to earn $8,200 a day from XRP...

    2 hours ago
  • The most trusted high-yield cloud mining one-stop platform...

    3 hours ago
  • Seeking stable returns amid Bitcoin(BTC) volatility...

    3 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.