How to Spot a Rug Pull Before It Happens

By Gurjeet Singh, developer of CoinPriceAlert · Published 24 August 2026 · 3 min read

Check who can move the money

Look at whether liquidity is locked, and for how long. Unlocked liquidity means whoever provided it can withdraw it at any moment, leaving holders with a token nobody can sell. This is the single most common mechanism and it is publicly checkable.

Then check whether the contract has functions allowing the creator to mint new tokens, pause transfers, or blacklist addresses. Any of these means the outcome is at one party's discretion regardless of anything else about the project.

Check who holds it

Heavy concentration in a few wallets means a coordinated exit is possible and easy. Look specifically for wallets holding large percentages that are not identifiable as exchanges or locked contracts.

Also check how the supply was distributed. A launch where insiders acquired most of the supply at negligible cost has built-in selling pressure at any price, and the people with the most information have the least reason to hold.

Check the human signals

Anonymous teams are not automatically fraudulent — plenty of legitimate crypto is pseudonymous — but combined with any of the above, anonymity removes the only remaining accountability. Copied documentation, a roadmap of vague milestones, and engagement that looks manufactured are all consistent tells.

Urgency is the strongest one. Sustained pressure to buy before a deadline exists to prevent exactly the checks described here. If you are being hurried, that is the finding — the rest is confirmation.

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