Rug Pull

A rug pull is a scam in which a token team drains holder value, usually by removing the liquidity that backs the token.

Rug pulls happen when liquidity-pool tokens are not locked or burned, letting the deployer withdraw the paired ETH or stablecoins in one transaction, or when the contract can mint and dump new supply. The price collapses to near zero and holders are left with unsellable tokens. Locked or burned liquidity and renounced ownership are the main defenses.