**SCAM SCHOOL: EPISODE THREE
How a Rug Pull Actually Happens (Step by Step)**
A rug pull may look sudden on the chart, but it never happens by accident. It is a planned process. Scammers prepare the rug long before anyone buys the token. When you understand the steps behind a rug pull, you can spot the danger before it is too late.
Here is how most rug pulls work from beginning to end.
1. The Setup Phase
The scammers start by creating the token, the contract, and the basic branding. They often make everything look clean and professional.This includes:a simple website, a logo, a short roadmap and a Telegram or Discord social media pages.
The goal at this stage is to look organised enough to attract early buyers.
2. The Social Proof Phase
Before launching, scammers try to create the illusion of interest. They do this by:buying followers, buying fake engagement, using bot chats in Telegram, copying content from real projects, paying micro-influencers to tweet âI am early on thisâ
Most beginners see the activity and assume the project is gaining momentum.
3. The Liquidity Trick
Scammers add liquidity to the token, but only a small amount, and they keep it unlocked. Unlocked liquidity is one of the biggest signs of a rug pull.
Why?
Because it allows the scammer to remove all the liquidity at any time. When they do, your tokens instantly become worthless because there is nothing backing the price.
4. The Build-Up Phase
Once the token is live, scammers try to attract as many buyers as possible. They use: hype tweets,
promises of future utility, screenshots of âbig buysâ (often their own wallets) and pressure tactics like âdo not miss this waveâ
false partnerships. Also, motivational posts to keep people buying; The goal is simple. They want fresh liquidity coming in.
5. The Trap Phase
As more buyers come in, the price goes up. This is when the scammer prepares the exit.
You may see: random large buys that pump the chart, fake âwhaleâ entries, sudden influencer mentions, and fast spikes to attract FOMO buyers
All of this is designed to make the chart look strong and believable.
6. The Switch Moment
The rug usually happens when the scammer feels they have collected enough liquidity. There are two main ways they pull it:
A. Liquidity Rug
They remove all the liquidity from the pool. Your tokens instantly become worth zero. You cannot sell anything.
B. Supply Dump
They sell their entire supply at once. The price crashes so hard that the chart goes straight down. Buyers are left holding the top. Some scammers do both.
7. The Disappearance
Right after the rug, the scammers vanish.
This includes: deleting the Telegram, locking the chat, removing the website and hiding the X account claiming âcontract issuesâ blaming phantom developers pretending they were hacked Everything shuts down within minutes. Victims are left confused, angry, and helpless.
Extra Rug Pull Variations You Should Know
Scammers sometimes use more advanced variations:
Slow Rugs Instead of one big removal, they drain liquidity little by little over weeks.
Tax Rugs They suddenly increase sell tax to 100 percent, making it impossible to exit.
Team Vesting Rugs They unlock team tokens after launch and dump them slowly.
Fake Relaunch Rugs They pretend there will be a migration, collect new liquidity, and run again.
All of these follow the same principle. The insiders win. The buyers lose.
Final Note
A rug pull is not an accident. It is a sequence. Once you understand the pattern, you become harder to deceive. Most rugs show signs long before the final collapse. Your goal is to recognise them early.