Orca Crypto
Security term

Rug pull

When a project team abandons it and takes the money.

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Updated 2026-08-303 min readDefinition
Definition

When a project team abandons it and takes the money.

A rug pull is theft dressed as a launch. The team builds hype, attracts liquidity, then removes it or dumps their allocation, leaving holders with a worthless token they cannot sell.

Hard rugs are outright theft, often with a hidden function in the contract. Soft rugs are slower: the team simply stops working and quietly sells.

In practice

Warning signs include anonymous teams with no track record, unlocked liquidity, a large team allocation and a contract that has not been audited.

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