Want to spot a potential rug pull? Watch the liquidity. This is rule #1.
If a token's liquidity pool isn't locked—or worse, locked for just 3 days—stay away. Period. The reason is brutal: an unlocked pool gives developers a free pass to drain every dollar the moment they feel like it. Doesn't matter how bullish the chart looks.
Here's what you're really risking: While you're watching price action and volume, the dev can ghost with the entire liquidity pool. One transaction. Gone. Your bags become worthless in seconds.
The fix? Simple. Check the liquidity lock status before you FOMO in. Long-term locks (6 months, 1 year, or longer) signal legitimate projects. Short-term or no locks? Red flag city.
Bottom line: If the liquidity isn't properly secured, you're not investing—you're gambling against the house, and the house always has an exit door.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Liquidity Lock: The Critical Safety Check
Want to spot a potential rug pull? Watch the liquidity. This is rule #1.
If a token's liquidity pool isn't locked—or worse, locked for just 3 days—stay away. Period. The reason is brutal: an unlocked pool gives developers a free pass to drain every dollar the moment they feel like it. Doesn't matter how bullish the chart looks.
Here's what you're really risking: While you're watching price action and volume, the dev can ghost with the entire liquidity pool. One transaction. Gone. Your bags become worthless in seconds.
The fix? Simple. Check the liquidity lock status before you FOMO in. Long-term locks (6 months, 1 year, or longer) signal legitimate projects. Short-term or no locks? Red flag city.
Bottom line: If the liquidity isn't properly secured, you're not investing—you're gambling against the house, and the house always has an exit door.