What is a Rug Pull?
The short answer
A scam where developers abandon a project and disappear with investors' funds, often suddenly.
A well-known scam pattern, especially with new, unaudited tokens promoted heavily on social media just before launch. See our Staying Safe guide for the warning signs.
Related terms
Full glossaryStaking
Locking up crypto to help secure a proof-of-stake network, in exchange for rewards.
Seed Phrase
A set of 12 or 24 words that is the master key to a crypto wallet — anyone…
Proof of Stake
A consensus method (used by Ethereum) where network security comes from participants locking up coins as collateral.
Decentralization
Spreading control across many independent participants instead of one company, so no single party can change the rules…
DEX (Decentralized Exchange)
A crypto exchange that runs on smart contracts rather than a company matching buyers and sellers.
Cold Wallet
A wallet whose keys are stored completely offline, disconnected from the internet — the most secure storage option.
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