How is a rug pull different from a scam token?

A rug pull is a SPECIFIC type of scam: the team creates a token, attracts investors, then drains all the liquidity (pulls the rug). Scam tokens are broader: honeypots (can buy but can't sell), tax tokens (50-99% sell tax), Ponzi schemes, fake airdrops. Rug pulls are characterized by: liquidity being abruptly drained, price dropping to zero within minutes. Hard rug = drain everything, soft rug = team gradually abandons.

Is TokenSniffer reliable?

TokenSniffer is the best FREE tool for a quick scan. Accuracy is ~80% — it detects most obvious rug pulls (honeypot, high tax, copy-paste code). However, it is NOT 100% reliable: sophisticated scams can bypass it. Use TokenSniffer + GoPlus + Bubblemaps together for higher accuracy. Score > 80/100 = relatively safe, < 50 = high risk, < 30 = very likely a scam.

How can I verify if the team is real?

Team verification checklist: 1) LinkedIn profiles — check connections, work history, endorsements, 2) GitHub — are there real commits, 3) Twitter/X — account age, followers (check for fake followers via SocialBlade), 4) Previous projects — what has the team shipped before, 5) KYC verified — CertiK KYC badge, Assure DeFi KYC. Red flag: an "anonymous" team + new project + promising huge returns = almost certainly a scam.

How long should liquidity be locked for?

Minimum 6 months, ideally 1-2 years. A short liquidity lock (1-3 months) = red flag — the team can withdraw after it unlocks. Check: 1) Lock on a reputable platform (Team.Finance, Unicrypt, PinkSale), 2) Percentage of liquidity locked (>80% is good), 3) Lock duration (more than 1 year). NOTE: liquidity lock does NOT guarantee safety — the team can still soft rug by dumping dev tokens or minting more.

Which audit firms are trustworthy?

Tier 1 (most trustworthy): CertiK, Trail of Bits, OpenZeppelin, Consensys Diligence. Tier 2: Peckshield, Hacken, Quantstamp, SlowMist. Tier 3 (audits done but quality is low): Techrate, InterFi, SolidProof. RED FLAG: "Self-audited", audits from unknown firms, or audit reports that are not public. Note: an audit does NOT guarantee 100% safety — it only reduces risk. Many projects have been hacked DESPITE being audited.

Are there any automated tools to detect rug pulls?

There are several tools: 1) TokenSniffer (free, score-based), 2) GoPlus Security API (real-time token safety check), 3) Bubblemaps (visual token distribution — spot concentrated holders), 4) DEXTools (real-time token analytics, honeypot check), 5) Quick Intel (Telegram bot, auto-scan), 6) De.Fi Scanner (portfolio-wide risk scan). Best practice: use 2-3 tools in combination before investing.

I've already been rug pulled — what now?

Step 1: Do NOT panic sell the remaining tokens (the price is likely near zero anyway). Step 2: Document everything — screenshots, transaction hashes, team wallets. Step 3: Report it on Chainabuse.com and CertiK Skynet. Step 4: Revoke token approvals (revoke.cash) — to prevent further draining. Step 5: Legal action is VERY difficult (anonymous team, cross-border). Recovery chance: nearly 0% for a hard rug. Lesson: only invest money you are willing to lose.

How to Spot a Rug Pull — 15-Point Checklist

Q: How can I verify if the team is real?

Team verification checklist: 1) LinkedIn profiles — check connections, work history, endorsements, 2) GitHub — are there real commits, 3) Twitter/X — account age, followers (check for fake followers via SocialBlade), 4) Previous projects — what has the team shipped before, 5) KYC verified — CertiK KYC badge, Assure DeFi KYC. Red flag: an "anonymous" team + new project + promising huge returns = almost certainly a scam.

Q: How long should liquidity be locked for?

Minimum 6 months, ideally 1-2 years. A short liquidity lock (1-3 months) = red flag — the team can withdraw after it unlocks. Check: 1) Lock on a reputable platform (Team.Finance, Unicrypt, PinkSale), 2) Percentage of liquidity locked (>80% is good), 3) Lock duration (more than 1 year). NOTE: liquidity lock does NOT guarantee safety — the team can still soft rug by dumping dev tokens or minting more.