Introduction
If youโve been in crypto long enough, youโve probably heard stories like โbro, it was a sure shot 100x โ until the dev disappeared.โ Yep, thatโs 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 donโt worry โ we will help you how to spot the red flags before your wallet gets drained.
โEveryoneโs a genius in a bull marketโฆ until the rug gets pulled.โ
1. The Promise
If a project promises โguaranteed 10x in 24 hours,โ itโs not ambition โ itโs a scam. Legit projects talk about utility, not price targets. Check if the whitepaper explains how theyโll deliver, not just what theyโll 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 canโt 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 Donโt Lie
Blockchain doesnโt forget. Use explorers like Etherscan, DexTools, or Solscan to check:
- Top holders: If 80% of the supply sits in two wallets, thatโs a ticking time bomb.
- Liquidity lock: If liquidity isnโt 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 projectโs vesting schedule on sites like TokenUnlocks.app. If a major unlock is coming soon, expect a sell-off faster than you can say โHODL.โ
5. Smart Contract Audit
Real projects proudly display smart contract audits from reputable firms like CertiK or Trail of Bits. If thereโs 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 โto the moonโ? A healthy community asks tough questions and gets real answers. A scammy one bans you for asking โwhen utility?โ
7. FOMO Is the Fastest Route to Rekt
Scammers love FOMO. Theyโll say โlimited presale spots left!โ or โwhales are buying now!โ Donโt let emotion override logic. If you miss one train, another will come โ at least this one wonโt 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, itโs not just about catching the next moonshot โ itโs about avoiding the next rug pull.
So, before you ape inโฆ pause, research, and maybe keep one eye on the exit door.

