🛡️ Part 18: Spotting the "Rug Pull"

Topic: How to Identify Scams and Fake Projects

As you become an expert, you will be targeted by scammers. In 2026, scams have become high-tech, using AI and deepfakes. A Rug Pull is when developers build a project, wait for you to invest, and then suddenly "pull the rug" by disappearing with the money.

1. The Anonymous Team

If a project's founders are "undoxxed" (anonymous) and have no track record, be extremely careful. Legitimate projects usually have founders with public LinkedIn profiles or a history of building successful apps.

2. Locked Liquidity

In a "Liquidity Rug Pull," the developers drain the trading pool so you can't sell.

The Check: Always look for Locked Liquidity. If the developers have locked their funds in a "time-vault" for 1 or 2 years, they cannot run away with the money today.

3. The "Honeypot" Trap

This is a clever scam where the smart contract is coded so that you can buy the coin, but the sell function is disabled for everyone except the developer. You see the price going up and up, but you are trapped.

Tip: Use tools like Honeypot.is or RugDoc to scan a coin's code before buying.