How to spot a rug pull
A practical checklist before you ape any memecoin.
Red flags
- Contract NOT renounced — owner can change tax or pause trading
- Liquidity NOT burned/locked — devs can pull at any time
- Hidden mint function in the contract
- One wallet holds >5% of supply outside of LP/burn
- Sells blocked in the contract (honeypot)
- Anonymous team with no community presence or moderation
- Telegram/X comments deleted, no replies to questions
- Unrealistic APY/tax/reflection promises
Green flags
- Contract renounced — owner is 0x000…000
- LP tokens sent to a burn address (verifiable on-chain)
- Top holders concentration low and well-distributed
- No mint function in the source code
- Multiple legitimate exchange listings (CG, CMC)
- Active, public moderation team and community
- Independent press coverage from real outlets
FAQ
What is a rug pull?
A rug pull is when a project's developers drain the liquidity pool or dump their token holdings, leaving other holders with worthless tokens.
How do I check if a contract is renounced?
Open the token on Basescan or Etherscan, click the 'Contract' tab, then 'Read Contract'. If owner() returns the zero address (0x000…000), the contract is renounced.
How do I check if liquidity is burned?
Find the LP token address on the DEX (e.g. Aerodrome). On the explorer, check the LP token's holders. If the largest holder is a dead/burn address, LP is burned.
Is $SKI safe from rug pulls?
$SKI's contract is renounced and the LP is burned, so the two biggest rug vectors are removed. That doesn't make any memecoin risk-free, but it does eliminate developer-driven rugs.
Related: How to store $SKI safely · $SKI tokenomics