₿ Crypto & Web3
Spotting Rug Pulls: A No-Nonsense Anti-Scam Playbook
Learn the red flags of crypto scams—tokenomics traps, fake liquidity, honeypots, influencer shills, and how to verify on-chain.
Red Flags
Anonymous team with no track record or recycled avatars.
No lock/vesting for team tokens; massive insider allocations.
Unlocked liquidity or removable LP tokens.
Honeypot code (you can buy but can't sell).
Aggressive promises (guaranteed APY, "risk-free").
Copy-pasted whitepapers and fake audits.
Due Diligence
- • Read the contract (or use reputable auditors' summaries)
- • Check holders distribution; beware top wallets controlling supply
- • Verify liquidity lock and lock period
- • Search for forked code + known vulnerabilities
- • Avoid celebrity/influencer-only marketing
Frequently Asked Questions
Are audits enough?
No—audits reduce risk, not remove it.
Is KYC useful?
It adds accountability but isn't a guarantee.
Best rule?
If it sounds too good to be true, it is.