How to Avoid Rugpulls

Rugpulls are a common scam in the meme coin space where developers abandon a project and run off with investor funds. Here's a step-by-step guide to protect yourself.

• Research the Team: Check if the developers are doxxed or have a track record. Anonymous teams are a red flag.
• Verify Liquidity Locks: Ensure liquidity is locked for a reasonable period using tools like Team Finance or Unicrypt.
• Check Contract Code: Use tools like RugCheck or Honeypot.is to audit the smart contract for malicious functions.
• Monitor Holder Distribution: Avoid tokens where a few wallets hold most of the supply, indicating potential dumps.
• Use Reputable Platforms: Stick to established launchpads and DEXs with security features.
• Diversify and Use Stop-Loss: Never invest more than you can afford to lose, and set exit strategies.

Always DYOR (Do Your Own Research) and consult multiple sources before investing.