noun

rug pull

RUHG puul

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Rug pull (noun) means a form of fraud in which the people behind a cryptocurrency project take the money investors have put in and abandon the project, leaving the remaining holders with a worthless or unsellable asset. Example: “The token lost almost all its value within an hour, and holders quickly concluded it had been a rug pull.”

noun

informal A form of fraud in which the people behind a cryptocurrency project take the money investors have put in and abandon the project, leaving the remaining holders with a worthless or unsellable asset.

"The token lost almost all its value within an hour, and holders quickly concluded it had been a rug pull."

"She lost her savings in a rug pull after the developers emptied the liquidity pool overnight."

verb

informal To carry out such a fraud on the people who have invested in a project.

"The anonymous founders rug pulled and deleted every social media account the same day."

How to use rug pull

Learner’s notes

In plain EnglishWhen the people who made a crypto coin run off with the money.

When to use it

Informal and journalistic. Common in crypto communities and in news reporting about them; not a legal term, though the conduct it describes may amount to fraud.

Memory tip

Used both as a noun (it was a rug pull) and as a verb (they rug pulled the community). The verb form is newer and still very informal.

Trace the full origin ↓

Easily confused with

exit scam pump and dump soft rug

Common pairings

a classic rug pull get rug pulled a slow rug pull rug pull risk

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C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

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Fill the gap

Can you complete this real example?

The token lost almost all its value within an hour, and holders quickly concluded it had been a _____.

Etymology

From the English idiom to pull the rug out from under someone, meaning to remove support suddenly and without warning.

Origin: English

Synonyms

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exit scam scam swindle fraud defraud fleece

Related words

fake corruption rob hook con fraud cheat fur

Frequently asked questions

What is the difference between a rug pull and a pump and dump?

In a pump and dump, an existing asset's price is inflated by coordinated hype and then sold off by the organisers, but the asset usually continues to exist and trade. In a rug pull, the project itself is abandoned by the people who created it, often by removing the funds that made the token tradable at all. A rug pull therefore tends to leave holders with something they cannot sell.

What is a soft rug pull?

A soft rug pull describes a project whose team quietly stops developing it and withdraws, without an obvious single moment of theft. The value drains away gradually rather than vanishing at once. The term is loose and people disagree about where ordinary project failure ends and a soft rug begins.

Is a rug pull illegal?

Rug pull is a community label rather than a legal category, so the answer depends on the jurisdiction and the facts. Conduct described this way may be prosecuted under existing fraud or securities law, but that is a matter for regulators and courts rather than something the term itself decides.

What is the meaning of rug pull?

"rug pull" (noun) means a form of fraud in which the people behind a cryptocurrency project take the money investors have put in and abandon the project, leaving the remaining holders with a worthless or unsellable asset.

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