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slang.fyi

rug pull

/rʌɡ pʊl/

Common

A crypto scam where developers hype a project, collect investor funds, and then abandon it and disappear with the money.

The term has expanded beyond crypto. Any situation where someone builds up trust and then suddenly bails is now called a rug pull.

Real-world examples4 examples
#ExampleWhat it meansSource
01That NFT project just rug pulled. Team wallet drained and Discord is gone.The project's developers took funds and deleted their community presence.x, 2022
02Anonymous team, no roadmap, launched last week. This has rug pull written all over it.Identifying red flags that suggest a project may be a scam.reddit, 2022
03Got rug pulled twice this year. Done with DeFi for now.Lost money to two scam projects and is stepping back from the space.reddit, 2022
04Honestly feels like the whole Web3 gaming push was a slow rug pull on developers.Suggesting an industry trend betrayed the people who invested time and resources in it.x, 2023

Use it when

  • A crypto or NFT project suddenly disappears after collecting funds.
  • Warning others that a project looks suspicious.
  • Describing any situation where someone withdrew support or resources without warning.

Do not use it when

  • A project failed due to poor execution rather than intentional fraud.
  • A company shut down after running out of funding legitimately.

Variations and related forms

rug

Shortened form, used as a verb: 'they rugged us.'

Rug pull vs pump and dump

rug pull

A rug pull involves developers who built the project disappearing with the funds.

VS

pump-and-dump

A pump and dump involves artificially inflating price and then selling, but the project may continue to exist.

Origin and context

Comes from the phrase 'pulling the rug out from under someone.' Became standard terminology in DeFi and NFT communities around 2020-2021 as exit scams became widespread.

First seen
2020
Confidence
medium

Cite this page

Use this stable URL to reference the entry.

https://slang.fyi/rug-pull
Updated: 2026-08-28License: CC BY 4.0

Related slang

pump and dumpdegenyield farming