Home
Future Protections Against Rug Pulls in Cryptocurrency

Future Protections Against Rug Pulls in Cryptocurrency

Michael James 14 November 2025 21 Comments

Rug Pull Risk Assessment Tool

Project Security Assessment

Enter key security metrics to determine the risk level of a cryptocurrency project.

Liquidity Lock Duration (days)

Top 5 Token Holders (% of Supply)

Team Transparency (0-10)

Audit Status

Every year, billions of dollars vanish overnight in the cryptocurrency world-not because of market crashes, but because someone built a fake project, took your money, and disappeared. That’s a rug pull. And in 2024 alone, U.S. investors lost $9.3 billion to crypto scams, according to the FBI. Most of those were rug pulls: projects that looked real, promised big returns, and then vanished the moment they got your funds.

What Exactly Is a Rug Pull?

A rug pull happens when developers create a cryptocurrency token, hype it up on social media, get people to invest, and then suddenly remove all the liquidity from the trading pool. Without liquidity, the token can’t be sold. Its value drops to zero. And you’re left holding digital trash.

There are two main types: hard and soft. A hard rug pull is fast and brutal. One day the token trades at $1, the next it’s worthless. No warning. No explanation. Just a drained liquidity pool and a GitHub repo that’s been deleted.

Soft rug pulls are sneakier. The team keeps posting updates, pretending everything’s fine. They might even release a new feature or two. But behind the scenes, they’re slowly selling off their tokens, draining the pool bit by bit. By the time you notice, it’s too late. The price has already collapsed.

Common tactics include:

Liquidity sweeps: Scammers add all the liquidity to a pool, wait for others to buy in, then pull it out when the price rises.
Honeypot contracts: The code looks normal, but you can’t sell your tokens-only buy them.
Pump and dump: Coordinated buying drives the price up, then the team sells everything.
Team exits: Developers vanish without notice, taking their wallets and the project’s funds with them.

How RPHunter Is Changing the Game

In 2025, a new detection system called RPHunter is a cutting-edge AI-powered detection system that combines smart contract code analysis with real-time transaction behavior to identify rug pulls before they happen was introduced-and it’s already making waves. Unlike older tools that only check for known malicious code patterns, RPHunter looks at how code and transactions interact.

It builds two graphs: one for the smart contract’s risky code structures (called the Semantic Risk Code Graph), and another for how tokens move between wallets (the Token Flow Behavior Graph). Then it uses machine learning to spot patterns that humans can’t see. The results? A 95.3% precision rate and a 93.8% recall rate on real-world rug pull cases. That means it rarely misses a scam-and rarely flags a real project by mistake.

When tested on live data, RPHunter flagged over 4,800 scam tokens with 91% accuracy. That’s not just good-it’s revolutionary. For the first time, protection isn’t reactive. It’s predictive.

Token Sniffer and GoPlus Security: Your First Line of Defense

You don’t need to be a coder to protect yourself. Tools like Token Sniffer is an AI-driven platform that analyzes smart contracts across multiple blockchains and assigns safety scores from 0 to 100 give you a simple number: a safety score between 0 and 100. If a token scores below 50, walk away. Above 80? It’s likely safe. It checks for:

Locked liquidity
Ownership renunciation
Unusual token distribution
Hidden mint functions

GoPlus Security is a blockchain security platform that scans dApps and smart contracts for vulnerabilities and malicious addresses does something similar but focuses on dApp interfaces and wallet risks. It finds hidden backdoors, unauthorized withdrawal functions, and admin keys that shouldn’t exist.

These aren’t just nice-to-haves anymore. They’re mandatory. If you’re thinking about investing in a new token, check its score on Token Sniffer before you send a single dollar.

A girl checks crypto safety scores on her tablets, transparent team profiles glowing beside hidden code threats.

Token Metrics: Seeing Beyond the Surface

Security isn’t just about code. It’s about people. A project with perfect code but a team that’s anonymous, has no track record, and never shows up on social media? That’s a red flag.

Token Metrics is a crypto analytics platform that evaluates tokens using both Trader Grade and Investor Grade ratings, incorporating security, team credibility, and liquidity metrics goes deeper. It doesn’t just check for scams-it rates long-term viability. Its Investor Grade looks at:

Has the project been audited by a reputable firm?
Are the developers identifiable? Do they have past projects?
Is liquidity locked for more than a year?
Is the token holder distribution concentrated in a few wallets?

A token might look safe on Token Sniffer but fail the Token Metrics test because the team is made up of ghost addresses. That’s why you need both tools.

Behavioral Detection: Catching Scammers Before They Act

The smartest scams don’t just vanish. They test the waters first. They’ll send small amounts to exchanges, check if anyone’s watching, then make the big move.

That’s where Elliptic is a blockchain analytics firm that uses AI to detect scammer wallets through behavioral patterns across multiple blockchains comes in. Their system doesn’t just look at what’s happening-it looks at how it’s happening. A wallet that sends 90% of its holdings to a centralized exchange after holding for 48 hours? That’s a classic dump pattern.

Elliptic’s tools flag these wallets automatically, even if they’re on different chains. Scammers used to jump between Ethereum, Solana, and BSC to hide. Now, cross-chain monitoring catches them.

This isn’t about catching the scam after it happens. It’s about stopping it before the first big transfer.

A protective network of blockchain layers shelters a token under a rising sun, hands from many cultures holding it safely.

What You Can Do Right Now

Technology helps-but it won’t save you if you ignore the basics.

Never invest based on FOMO. If a project is pushing you to “buy now” or “limited time offer,” it’s a scam.
Check the liquidity. Is it locked? For how long? If it’s not locked-or if the lock is only for 30 days-run.
Look at the holders. If 10 wallets hold 80% of the supply, the team can dump anytime.
Read the contract. You don’t need to understand Solidity. Use Token Sniffer to do it for you.
Watch for anonymous teams. If you can’t find a LinkedIn profile, GitHub history, or real name, assume it’s a front.

The Bigger Picture: Regulation and Community

Governments are starting to act. The California Department of Financial Protection and Innovation keeps a public Crypto Scam Tracker. It’s not perfect, but it’s a start. In the future, expect global cooperation-where scam data is shared across borders in real time.

Communities are also becoming shields. Platforms that let users report suspicious projects and reward accurate reports are growing. Think of it like Wikipedia for crypto safety: the more people contribute, the safer it gets for everyone.

But here’s the truth: no tool, no regulation, no community can replace your own judgment. If something feels too good to be true, it is. If the team won’t show their face, don’t give them your money.

The Future Is Layered

There’s no single fix for rug pulls. But the future isn’t about one magic tool. It’s about layers:

Code analysis (RPHunter, Token Sniffer)
Behavioral monitoring (Elliptic)
Project evaluation (Token Metrics)
Regulatory databases (Crypto Scam Tracker)
Community reporting (user-driven alerts)
Your own discipline (no FOMO, no blind trust)

When these layers work together, rug pulls become rare. Not impossible-but rare enough that you can finally invest with confidence.

How can I tell if a crypto project is a rug pull before investing?

Check for locked liquidity, a renounced contract, and a team with verifiable identities. Use tools like Token Sniffer to get a safety score above 80. Avoid projects with anonymous developers, high token concentration, or sudden social media hype. If the project promises guaranteed returns, it’s a red flag.

Is RPHunter available to the public?

RPHunter is currently used by major crypto exchanges and security firms for real-time monitoring. While the full system isn’t public yet, its detection logic has been integrated into platforms like Token Sniffer and GoPlus Security. You can access its benefits indirectly by using these tools.

Can I trust audit reports from firms like CertiK?

Audits help, but they’re not foolproof. Some audits are superficial, and scammers have paid for clean reports on malicious code. Always cross-check audits with other signals: liquidity locks, team transparency, and behavioral patterns. A clean audit + a 95% safety score on Token Sniffer = stronger confidence.

Why do rug pulls keep happening if there are so many detection tools?

Scammers adapt faster than regulations. As soon as a new detection method is released, they tweak their code to bypass it. That’s why tools like RPHunter use machine learning-they evolve automatically. But the biggest reason rug pulls persist is human behavior: greed, FOMO, and lack of research. No tool can fix that alone.

Are there any safe new crypto projects right now?

There’s no such thing as a guaranteed safe new project. But projects with long-term locked liquidity, audited code, transparent teams, and active communities have a much lower risk. Use Token Metrics’ Investor Grade to filter for those with strong fundamentals-not just hype. If you’re unsure, wait. The best investments aren’t the ones you jump into first-they’re the ones you understand well enough to avoid.