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How To Spot Crypto Scams And Rug Pulls – A Pro Guide

Introduction
If youโ€™ve been in crypto long enough, youโ€™ve probably heard stories like โ€œbro, it was a sure shot 100x โ€” until the dev disappeared.โ€ Yep, thatโ€™s a rug pull. In a market where memes moon and millionaires are minted overnight, scams and rug pulls hide behind shiny whitepapers and hyped-up Telegram groups. But donโ€™t worry โ€” we will help you how to spot the red flags before your wallet gets drained.

โ€œEveryoneโ€™s a genius in a bull marketโ€ฆ until the rug gets pulled.โ€


1. The Promise

If a project promises โ€œguaranteed 10x in 24 hours,โ€ itโ€™s not ambition โ€” itโ€™s a scam. Legit projects talk about utility, not price targets. Check if the whitepaper explains how theyโ€™ll deliver, not just what theyโ€™ll deliver.


2. Checking the Team

Before investing, perform a deep research on founders and developers. Search their names on LinkedIn, Twitter, or GitHub. Do they have previous crypto projects? Were those successful or quietly abandoned?
If you canโ€™t find any trace of them โ€” not even a blurry conference selfie โ€” you might be dealing with anonymous masterminds planning the next rug.


3. On-Chain Metrics Donโ€™t Lie

Blockchain doesnโ€™t forget. Use explorers like Etherscan, DexTools, or Solscan to check:

  • Top holders: If 80% of the supply sits in two wallets, thatโ€™s a ticking time bomb.
  • Liquidity lock: If liquidity isnโ€™t locked, devs can pull funds anytime.
  • Contract verification: Unverified smart contracts often hide malicious functions.

Remember โ€” numbers on-chain tell more truth than words on Twitter.


4. Token Unlocks

Many scams and rug pulls pump hard before token unlock events โ€” when early investors or the team get their tokens released. These tokens often flood the market, crashing prices overnight.
Before investing, check the projectโ€™s vesting schedule on sites like TokenUnlocks.app. If a major unlock is coming soon, expect a sell-off faster than you can say โ€œHODL.โ€


5. Smart Contract Audit

Real projects proudly display smart contract audits from reputable firms like CertiK or Trail of Bits. If thereโ€™s no audit โ€” or worse, a fake one โ€” run. A missing audit in crypto is like skydiving without a parachute.


6. The Community Vibe Check

Join their Telegram or Discord. Are discussions genuine or just bots spamming โ€œto the moonโ€? A healthy community asks tough questions and gets real answers. A scammy one bans you for asking โ€œwhen utility?โ€


7. FOMO Is the Fastest Route to Rekt

Scammers love FOMO. Theyโ€™ll say โ€œlimited presale spots left!โ€ or โ€œwhales are buying now!โ€ Donโ€™t let emotion override logic. If you miss one train, another will come โ€” at least this one wonโ€™t derail your portfolio.


Conclusion
Crypto is full of innovation, but also imitation and manipulation. Do your homework: check the team, read the code, watch on-chain data, and trust your gut. Remember, in crypto, itโ€™s not just about catching the next moonshot โ€” itโ€™s about avoiding the next rug pull.

So, before you ape inโ€ฆ pause, research, and maybe keep one eye on the exit door.

Ritesh Gupta
Ritesh Gupta is a Market Analyst on Cryptojist and Trader since 2021. Been through 2 crypto bear markets. Proficient in financial and strategic management.

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