What is a Rug Pull in Crypto?

The complete guide to detecting and avoiding rug pulls on Solana in 2026.

A rug pull is a type of crypto scam where developers create a token, attract investors, and then drain all the liquidity — leaving holders with worthless tokens. On Solana, rug pulls happen daily on platforms like pump.fun.

3 Types of Rug Pulls

1. Liquidity Pull

The developer adds liquidity to a DEX, waits for people to buy, then removes all liquidity. The token becomes impossible to sell.

2. Mint Authority Rug

The creator keeps mint authority enabled, allowing them to create millions of new tokens. They dump these on the market, crashing the price to zero.

3. Honeypot

The token's smart contract blocks selling. You can buy but you can never sell. Your money is trapped forever.

How to Detect a Rug Pull

  • Check mint authority — if not revoked, the creator can print tokens
  • Check freeze authority — if enabled, the creator can freeze your tokens
  • Check top holders — if one wallet holds 50%+, it's a whale dump risk
  • Check liquidity — very low liquidity means you can't sell
  • Check token age — tokens less than 1 hour old are highest risk
  • Run a honeypot check — simulate a sell to see if it works

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