Rug Pulls

​

Overview

​

How Rug Pulls Work

1. Token Creation: Scammer creates a new token
2. Liquidity Addition: Initial liquidity is added to DEX
3. Hype Building: Aggressive marketing attracts buyers
4. Price Pump: Buying pressure increases token price
5. Rug Pull: Creator removes liquidity, crashing the price
6. Exit: Scammer disappears with the funds

​

Types of Rug Pulls

​

Hard Rug Pull

• Sudden, complete liquidity removal
• Token becomes immediately untradeable
• Most obvious but hardest to recover from

​

Soft Rug Pull

• Gradual selling by insiders
• Slow price decline over time
• Harder to identify as a scam

​

Liquidity Drain

• Hidden functions allow liquidity removal
• May bypass “locked” liquidity claims
• Often uses complex contract mechanisms

​

Detection Indicators

​

API Example

curl -X GET "https://api.webacy.com/tokens/0x123...?chain=eth" \
  -H "x-api-key: YOUR_API_KEY"

{
  "overallRisk": 95.0,
  "issues": [
    {
      "tag": "unlocked_liquidity",
      "severity": "high",
      "description": "Liquidity is not locked and can be removed at any time"
    },
    {
      "tag": "minter-rug_pull",
      "severity": "critical",
      "description": "Token minter has been involved in previous rug pulls"
    }
  ]
}

​

Red Flags

• Unlocked liquidity - No verified lock on LP tokens
• Anonymous team - No public, verifiable identities
• Unrealistic promises - Guaranteed returns or moonshot claims
• Rushed launch - Little documentation or roadmap
• Concentrated ownership - Few wallets hold most supply
• No audit - Contract not reviewed by reputable auditors

​

Liquidity Analysis

# Check liquidity pools for a token
curl -X GET "https://api.webacy.com/tokens/0x123.../pools?chain=eth" \
  -H "x-api-key: YOUR_API_KEY"

• Total liquidity - Higher is generally safer
• Lock status - Is LP locked? For how long?
• Lock contract - Is it a reputable locker?
• Unlock date - When can liquidity be removed?

​

Protection Strategies

1. Verify liquidity locks - Check lock duration and contract
2. Research the team - Look for doxxed, verifiable members
3. Check holder distribution - Avoid concentrated ownership
4. Start small - Never invest more than you can afford to lose
5. Use Risk DD - Scan tokens before investing
6. Monitor for changes - Set up alerts for liquidity movements

​

Related Concepts

• Honeypots - Tokens that prevent selling
• Liquidity Risks - Understanding liquidity dangers
• Snipers & Bundlers - Launch manipulation