A rug pull is a type of cryptocurrency scam where project developers attract investor funds — typically by launching a token and encouraging purchases — and then abruptly remove liquidity or sell their token holdings, causing the token price to collapse and leaving investors with worthless tokens.

Rug pulls are most common in newly launched tokens with anonymous teams and unlocked liquidity. They can be prevented or mitigated by locking liquidity pool tokens and team allocations — proven on-chain mechanisms that restrict the developer's ability to remove funds early.

LP locking is the most direct countermeasure against liquidity rug pulls. When LP tokens are locked in a smart contract, the underlying liquidity cannot be withdrawn before the unlock date — even by the project team.