What does rug pull mean?
Short answer
A rug pull is when the people behind a token suddenly remove the liquidity or dump their entire holdings, collapsing the price to near zero and leaving other holders unable to sell at any reasonable price. It is the most common way memecoin traders lose money.
A hard rug pulls the liquidity in a single transaction; a soft rug is a slow abandonment with steady insider selling. Both are enabled by unlocked liquidity, live mint authority, or heavy supply concentration.
Related questions
How can I avoid getting rugged?
Check that liquidity is locked or burned, authorities are renounced, and supply is not concentrated, before you buy. Then size for a possible total loss in case the checks miss something.
What is the difference between a hard and soft rug?
A hard rug is a sudden one-transaction liquidity pull. A soft rug is a gradual bleed-out as the team quietly sells and abandons the project.
Can liquidity be pulled if it is locked?
Not until the lock expires (and never if it is burned). That is exactly why LP lock/burn status is the key anti-rug check — but always verify the duration and amount.
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Education only — not financial advice. Memecoins are extremely high risk.
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