Traps in the Crypto Assets World: Unveiling the Rug Pull eyewash

During the bull market in the crypto assets market, many investors gained substantial returns from a certain project, but many others suffered heavy losses due to the project team absconding with funds. Recently, the price of Aura (AURA) skyrocketed by 800% in just a few hours, drawing market attention. However, some analysts warn that this could be a carefully orchestrated eyewash, known as a "Rug Pull" fraud. This type of fraud is spreading in an industrialized manner within the crypto assets field.

The Astonishing Scale of Rug Pulls

According to data analysis, there are over 300,000 tokens exhibiting varying degrees of Rug Pull behavior on the four major public chains, with hundreds of "trap coins" being deployed on average every day. On the Ethereum network, there are approximately 266,000 independent addresses specifically engaged in creating and promoting fraudulent tokens. These eyecatchers utilize low-threshold token issuance tools and a large user base to precisely set traps.

Despite the average profit of a single scam project on Ethereum being around $1.65 million, the total illegal gains have reached an astonishing $502 billion due to the large number of participants. Hundreds of Rug Pull incidents have also occurred on other public chains such as Polygon and Linea, resulting in significant losses for many investors. According to statistics, over 7.05 million investors have become direct victims of such eyewash.

Types and Characteristics of Rug Pulls

Hard Rug Pull

This is a complete act of capital plunder. Scammers quickly siphon off all the liquidity of the project by pre-setting malicious code or exploiting vulnerabilities. Some addresses have records of crimes on multiple blockchains, using the characteristics of different chains to evade tracking.

Many scam addresses exhibit a very high frequency of criminal activity, with some addresses linked to dozens of Rug Pull tokens and drained liquidity pools. These eyewash schemes typically have a very short life cycle, with some completing the scam on the day of launch, leaving investors with no time to react.

Soft Rug Pull

Compared to hard Rug Pulls, soft Rug Pulls are more covert. Scammers usually only withdraw about 50% of the liquidity, creating a false appearance of a slow decline in the token price. They may fabricate various reasons, such as upgrading the system or responding to market fluctuations, to confuse investors. Although the impact may seem smaller in a single instance, it can actually cause broader and long-term damage.

The Development Trend of Rug Pulls

Data shows that 2023 is the peak period for the deployment of fraudulent tokens on Ethereum, reaching 125,000, accounting for 42.3% of the total over five years. However, this number sharply declined by 45% in 2024. It is worth noting that the average lifespan of scam contracts has decreased from 356 days in 2021 to only 3.8 days in 2025, demonstrating the continuous evolution of eyeglass techniques.

Prevention Suggestions

In the face of such large-scale fraud, investors need to be vigilant. Before investing, one should carefully check key information such as whether the project's contract is open source, whether it has been audited by a reputable auditing firm, whether the team's background is verifiable, and the status of liquidity lock-up. Be cautious of projects that promise high returns, have anonymous teams, lack audits, show suspicious liquidity, or experience a sharp increase in a short period.

Conclusion

The scale and impact of Rug Pull eyewash are no longer just an issue of individual investors suffering losses, but a serious threat to the trust foundation of the entire blockchain and Crypto Assets industry. The purpose of exposing these dark truths is not only to remind everyone to be aware of risks but also to promote the establishment of a more complete regulatory system in the industry, to protect investors' interests and maintain market order.