Rug Pull

What is a rug pull in cryptocurrency?

A cryptocurrency scam

In the DeFi and cryptocurrency world, a "rug pull" is a scam in which an entity convinces people to buy into a new currency and then drains that currency's liquidity, devaluing the currency in the process. This leaves purchasers with worthless coins.

"Rug pull" is a derivative of the phrase "to pull the rug out from under someone," which means to upend someone or take away their support. In a crypto "rug pull," the crypto's developer takes away all support for the currency, leaving the currency's owners holding the bag.

Because DeFi and cryptocurrencies are largely unregulated, "rug pulls" are relatively easy to pull off. Before buying any cryptocurrency, make sure to do your DD (and especially, check whether the currency's liquidity is locked). Otherwise, you might "get rugged."

Example

"Did you see that TRUAMPL was just another rug pull? Glad I didn't buy into that one."
Crypto rug pulls are not uncommon

Crypto rug pulls are not uncommon

Related Slang

Usage

Last Updated: May 12, 2021

Rug pull definition

This page explains what the slang term "Rug pull" means. The definition, example, and related terms listed above have been written and compiled by the Slangit team.

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