7 million people affected by rug pull scams, with the total scam amount exceeding $500 billion

On June 11, 2024, a token called Aura (AURA) surged by 800% within a few hours, with trading volume skyrocketing by over 115,000%. This should have been a moment of celebration for investors, but it turned into a classic case of a rug pull scam. Cryptocurrency security analyst David issued a warning at the time: this is highly likely to be a carefully orchestrated organized scam—a crime pattern known as “rug pull” that is sweeping across the entire crypto market on an industrial scale.

Viewing the Aura Surge: The Operating Tactics of Rug Pulls

The Aura incident is not an isolated case but just the tip of the iceberg. According to on-chain data analysis platform bitsCrunch, over 304,000 tokens involved in rug pull scams have been identified on the four major blockchains: Ethereum, Avalanche, Polygon, and Linea. This means hundreds of “trap tokens” are deployed daily on the blockchain, quietly waiting for the next victims.

Even more shocking is that these scams have affected over 7.05 million people. This is not just a series of individual investment losses but a systemic wealth plunder—total scam amounts reaching $502 billion, an unimaginable astronomical figure. On average, each successful rug pull scam can generate about $1.65 million in illicit gains for the scammers.

Industrial-Scale Scam Ecosystem: Rug Pulls Have Become a Black Industry Chain

The scale of rug pull scams is driven by a well-defined, process-oriented black industry chain. According to bitsCrunch data, there are 266,000 active deployment addresses on Ethereum alone, specializing in creating and promoting fraudulent tokens. These are not amateur scammers but professional scam groups skilled in using low-threshold token creation tools, social media marketing, and cross-chain arbitrage.

Some scam addresses are even linked to dozens of rug pull tokens. For example, one address on Avalanche is associated with 45 rug pull scams, and some addresses on Polygon are linked to 17-18 scam tokens simultaneously. These “hit-and-run” professional scammers have formed a clear criminal pattern—extremely low costs with potentially enormous “profits.”

Cross-chain operations have also become a new feature of rug pull scams. Some scam addresses have records of crimes on multiple chains such as Polygon and Avalanche. Scam groups are learning to exploit the characteristics of different chains to commit crimes while avoiding detection.

Hard Pull and Soft Pull: The Two Main Tactics of Rug Pull Scams

Rug pull scams generally fall into two modes, representing different “styles” of scammers.

Hard Rug Pull is the most direct and brutal form of plunder. Scammers embed malicious code or vulnerabilities in the smart contract in advance, then drain all liquidity at a critical moment. The token price plummets to zero instantly, leaving investors with no time to react. Statistics show that many hard rug pull tokens have a lifespan of only 0 to 3 days, after which the scammers disappear. This approach is especially favored by quick-profit scam groups—acting fast and not caring about tomorrow.

Soft Rug Pull is more covert and insidious. Instead of draining all liquidity at once, scammers gradually withdraw liquidity, usually about 50% each time. This “boiling frog” tactic creates an illusion—tokens do not collapse suddenly but decline slowly, as if the project team is merely adjusting strategies or migrating contracts temporarily. Investors, hoping for the best or reacting too late, often suffer gradual losses during this prolonged decline until it’s too late. Compared to hard rug pulls, soft rug pulls are more concealed and can affect a broader range of victims.

A Five-Year Data Perspective: The Cycle and Evolution of Rug Pull Scams

Rug pull scams show clear cyclical characteristics. Ethereum data is particularly representative: 2023 was a peak year, with 125,759 fraudulent tokens deployed, accounting for 42.3% of the five-year total. However, in 2024, deployment dropped sharply to 69,154 tokens, a 45% decrease year-over-year.

This downward trend may reflect two possible factors: first, market participants are becoming more cautious; second, regulatory and technical defenses are starting to take effect. However, what is alarming is that the average lifespan of scam contracts has drastically shortened—from 356 days in 2021 to just 3.8 days in 2025. Scammers are speeding up their operations, leaving less and less time for investors and regulators to respond.

Differences also exist across blockchains. According to bitsCrunch data, Polygon has recorded 7,680 rug pull tokens created by 4,640 active scam deployers; Linea, as an emerging chain, has a smaller data volume but already has 4 contracts drained of liquidity, indicating that scams are spreading into new ecosystems.

Identification and Defense: How to Avoid Rug Pull Traps

Investors need to be their own first line of defense. Before falling victim to a rug pull scam, consider these key checks:

First, verify whether the token contract is open source and has been audited by reputable auditing firms. Unaudited contracts are like black boxes full of unknown risks.

Second, verify the real identity and background of the project team. Anonymous teams are not necessarily scams, but combined with other risk signals, they should raise suspicion.

Third, confirm the liquidity lock status. If liquidity is not locked or the lock period is very short, scammers can withdraw funds and run at any time.

Also, be alert to red flags such as promises of high returns, rapid price surges and crashes, excessive marketing and hype on social media, and tokens that immediately pump after listing—these are common precursors to rug pulls.

Conclusion: The Industry Dilemma Behind the Trust Crisis

The scale and complexity of rug pull scams have gone beyond simple investment risks. With hundreds of thousands of fraudulent tokens, tens of thousands of scam deployers, over 7.05 million victims, and illegal gains exceeding $500 billion, these figures represent a systemic attack on the very foundation—trust—of the entire blockchain and cryptocurrency industry.

As scam techniques become more professional and industrialized, relying solely on investor self-protection is no longer sufficient. The industry needs to establish more comprehensive regulatory frameworks, stronger risk control mechanisms, and cross-chain scam detection capabilities. Only when the costs of rug pull scams are high, the profits are minimal, and the likelihood of being caught is significantly increased, can this large-scale scam activity be truly curbed. Exposing the dark truth behind rug pulls is not only to warn investors but also to inspire the entire industry to develop a healthier ecosystem.