Step 1: Create a Token (Fast and Free)
Rug pullers start by launching a token on a decentralized platform like Pump.fun, PinkSale, or through manual deployment on Solana, Ethereum, BSC, etc. It usually takes under 5 minutes.
•Token name: Something memeable like “RUGBABY” or “SAFEMOONZILLA”
•Ticker: Short and catchy, usually 3-6 lettersSupply: Set high to make unit price seem cheap (“Only $0.0000005!!!”)
•No utility. No plan. Just vibes.
Step 2: Inject Initial Liquidity
They add a bit of liquidity maybe $5K to $30K to a DEX pool (Raydium, Uniswap, etc). This creates the illusion of a fair start.
But here’s the trick:
•The dev controls 100% of the LP (liquidity provider) tokens
•They can remove the liquidity at any time, unless it’s locked (which they usually avoid or fake)
Step 3: Spark the Hype
They pump it fast using:
•Fake Twitter/X profiles (or real influencers, paid off)
•Telegram groups with bots shilling “BUY BUY BUY”
•Meme-style branding (Pepe, Trump, Elmo, dogs, frogs you name it)
•Trending leaderboards (Pump.fun ads, Dexscreener rankings)
•They might even airdrop tokens to get people talking.
Step 4: Let It Cook
This is where it gets devious.
They let early buyers FOMO inPrice shoots up 100%, 500%, sometimes even 1000%Volume hits hundreds of thousands or even millionsPeople think: “This might be the next $DOGE.”
Meanwhile, the dev is waiting with their finger on the kill switch.
Step 5: Pull the Liquidity (The Rug)
Once enough suckers are in, they:
•Remove the liquidity pool tokens they control
•This instantly drains the token’s ability to be trade.
•Price crashes to near zero
•Holders can’t sell
The dev walks away with the real assets (SOL, ETH, etc.) not the worthless token they created.
How They Cover Their Tracks
•They might renounce the token contract to appear “safe”
•Use burner wallets that vanish post-rug
•Disappear from socials instantly or pretend they “got hacked”
•Sometimes spin up multiple rugs under new names
HOW TO SPOT A RUG PULL BEFORE IT HAPPENS
Here’s your checklist before buying any token:
1. Who controls liquidity?
Check if liquidity is locked (via platforms like Pump.fun lock explorer or Unicrypt)
If the dev owns LP tokens, they can pull itNo lock = no trust
2. How concentrated are token holdings?
If top 5 wallets hold 80%+ of supply, you’re at their mercy
Use tools like Dexscreener “Top Holders” or Solscan
3. Does the chart look too good to be true?
10x in 10 minutes isn’t sustainableIf it looks like a rocket without correction, it’s probably being pumped for exit
4. Are the socials real?
Are the Twitter followers botted?
Is the Telegram full of weird copy/paste comments?
Is the dev doxxed or a cartoon with 3 posts?
5. Is there a roadmap, website, or whitepaper?
Not always a dealbreaker for meme coins, but if it’s just a chart and a logo, that’s a red flagIf the website looks rushed, they probably were
Final Take
Rug pulls are premeditated scams designed to look like viral launches.
If you’re trading in meme coin trenches, always assume the token could rug unless proven otherwise.
Triple-check everything:
•Liquidity
•Holder distribution
•Social legitimacy
And if it smells like hopium and burns like gas fees it’s probably a trap.
Stay sharp, stay skeptical, and don’t be exit liquidity.
