The number of rug pull cases in Crypto Assets decreased significantly in 2024, but the scale of single losses expanded.

According to data from blockchain analysis platforms, the number of rug pull fraud cases in the Crypto Assets sector decreased by 66% in 2024 compared to last year, but the scale of losses per incident has shown an upward trend.

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The data report notes a significant decrease in the frequency of rug pull events, with 21 separate incidents recorded at the start of 2023 compared to just seven so far in 2024. This change suggests that the industry may be moving in a more mature direction.

Although the number of incidents has decreased, the Web3 ecosystem has lost nearly $6 billion due to fraudulent activities since the beginning of 2024. However, analysts point out that about 92% of the losses in this data are related to the price crash of a certain token, while the project's founder has strongly denied that this was a premeditated fraudulent act. In contrast, the total losses from rug pulls during the same period in 2023 were approximately $9 million.

An industry analyst stated: "This change indicates that while the phenomenon of rug pulls is generally decreasing, their destructiveness far exceeds that of the past once they occur. These scams have become more sophisticated, often orchestrated by teams with refined branding and carefully crafted narratives."

Memecoin becomes a primary target for rug pulls

According to research, the nature of rug pull is constantly evolving. In the first quarter of 2023, the majority of fraud cases originated from DeFi protocols, NFT projects, and meme coins. And in the same period of 2024, meme coins have become the main target area of Rug Pull.

A recent high-profile example is a Solana native token project. On Feb. 14, the project's market value soared to $4.56 billion after a South American country's president posted on social media. However, when the politician deleted the post, the token's price plummeted by more than 94%, sparking accusations of price manipulation.

Analysts emphasize: "Fraud and exit scams remain a persistent threat, especially in ecosystems where projects can quickly gain attention through hype but may take away users' funds overnight. Despite the increasing awareness and the growing number of tools to detect suspicious behavior, rug pulls continue to be a recurring issue."

Identifying Warning Signs of a Rug Pull

Experts point out that investors should be wary of some dangerous signals of rug pulls, including:

1. The number of active wallets has suddenly surged without any obvious reason.
2. The trading volume is exceptionally high, but the user activity is relatively low.
3. Unverified Smart Contracts
4. Limited Open Source Code Activities
5. Anonymous Development Team
6. Projects that surged overnight

"As the industry matures, so do the methods used by criminals. Fortunately, the protection tools available to users are also growing. While rug pull behavior may never be completely eliminated, its impact can be greatly reduced when the user has the right information," the industry expert concluded.

With the development of the Crypto Assets market, investor education and risk awareness will continue to be core elements in preventing such fraudulent activities.