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What Is a Rugpull? Tips on How To Avoid Them

ID: 32a15d8a-f13e-51dd-8a8d-3ce3147bd81c

STIX ID: report--32a15d8a-f13e-51dd-8a8d-3ce3147bd81c

Feed Name: CertiK Blog

Threat Score
35/100

Date Published: 2021-12-17

Date Updated: 2026-06-11

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**DeFi rug pull advisory:** This report explains how founders can perform rug pulls by creating liquidity pools on decentralized exchanges, rapidly profiting as token prices surge, then dumping tokens and taking underlying assets, and it lists red flags (unsustainably high yields, anonymous teams, skyrocketing prices, heavy marketing, missing liquidity locks) plus mitigations like timelocks, liquidity monitoring, code/whitepaper review, and team due diligence.

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