What Is Rug Pull?
Definition
A rug pull is a type of crypto scam where a token creator removes all liquidity from a DEX pool, crashes the price to zero, and disappears with the funds.
A rug pull happens when a token creator: 1. Creates a token and pairs it with SOL/ETH in a liquidity pool 2. Promotes the token to attract buyers, driving the price up 3. Removes all liquidity from the pool in a single transaction 4. The token price crashes to zero and buyers can't sell
- Check if LP tokens are burned: If the creator burned their LP tokens, they can't remove liquidity
- Check if mint authority is revoked: If not revoked, the creator could mint unlimited tokens and dump them
- Check if freeze authority is revoked: If not revoked, the creator could freeze your wallet
- Check token holder distribution: If one wallet holds 50%+ of supply, they can crash the price by selling
- Burn 100% of LP tokens (locks liquidity forever)
- Revoke mint authority (locks supply)
- Revoke freeze authority (guarantees transferability)
- Make metadata immutable (proves branding can't be changed)
CoinDevTools provides free tools for all four of these trust signals.
Related Terms
LP Tokens (Liquidity Provider Tokens)
LP tokens represent your share of a liquidity pool. They can be redeemed to withdraw your deposited assets or burned to permanently lock the liquidity.
Liquidity Pool
A liquidity pool is a pair of tokens locked in a smart contract that enables decentralized trading on automated market makers (AMMs) like Raydium and Uniswap.
Mint Authority
The mint authority is the wallet address authorized to create new tokens for an SPL token on Solana. Revoking it permanently locks the token supply.
Freeze Authority
The freeze authority is the wallet address that can freeze (prevent transfers of) any token account for an SPL token on Solana.