# Rug Pull

*Crypto & Digital Assets — Finicade finance glossary*

A rug pull is a project's creators abandoning it and taking investors' money, usually by draining the liquidity pool or dumping a hidden allocation. The tells are checkable before investing: unlocked liquidity, anonymous teams with no track record, contracts with a mint function, and token distributions where insiders hold most of the supply.

**Also known as:** rugpull, exit scam, soft rug

**Related terms:** [Altcoin](https://finicade.com/glossary/altcoin), [Tokenomics](https://finicade.com/glossary/tokenomics), [Initial Coin Offering (ICO)](https://finicade.com/glossary/initial-coin-offering), [Smart Contract](https://finicade.com/glossary/smart-contract), [Liquidity Pool](https://finicade.com/glossary/liquidity-pool)

Source: https://finicade.com/glossary/rug-pull