Basics

How to spot a rug pull

7 min read · Updated August 23, 2026

Most rugs are visible before the money moves. Five minutes of on-chain checking filters out the overwhelming majority of them.

The five-minute on-chain check

Read the contract on the explorer — is the source verified?
Solana: are mint and freeze authority revoked? EVM: is ownership renounced or held by a disclosed multisig?
Is LP locked or burned, with a linked transaction?
What share of supply do the top 10 wallets hold, excluding LP and burn addresses?
Does a small test sell go through?

Social red flags

Admins who DM first, always.
Guaranteed returns or price targets.
Comment sections where every reply is the same three phrases.
A contract address that differs between the site, the pin and the bio.
Countdown pressure — 'last chance' framing exists to stop you checking.

Signals that are weaker than they look

Large follower counts — cheap to buy.
An audit badge with no linked report.
Listing on an aggregator — most are automatic and imply no review.
Partnership logos without a linked announcement from the partner.

Signals that are stronger than they look

Verified project ownership proven by a wallet signature from the contract authority.
Verified holder votes from wallets with real balances.
A team that publishes bad weeks as readily as good ones.
Public treasury address with legible spending.

Key takeaways

Contract permissions and LP status answer most of the question.
Holder concentration tells you how bad the downside can get.
Prefer signals someone else verified over signals the team asserts.

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