"Crypto Rug Pulls Surge in Devastating Impact: DappRadar Report"

Crypto Rug Pulls: Decrease in Frequency, Increase in Devastation

According to a recent report from blockchain analytics platform DappRadar, there has been a 66% year-on-year decrease in the number of crypto rug pulls in 2025 compared to the previous year. However, despite the drop in frequency, the size of each rug pull has been on the rise, making them more devastating than ever.

In early 2024, there were 21 separate incidents of rug pulls, while in 2025, there have been only seven so far. Despite this decrease, the total losses from rug pulls since the beginning of 2025 have reached nearly $6 billion, as reported by DappRadar. The majority of these losses, 92% to be precise, can be attributed to the collapse of Mantra's OM token, which the founders vehemently deny was a rug pull.

Comparatively, during the same period in early 2024, total losses from rug pulls stood at $90 million. This shift in the crypto landscape indicates that while rug pulls are happening less frequently, their impact is far more severe when they do occur, according to DappRadar analyst Sara Gherghelas.

"The scams are increasingly sophisticated, often orchestrated by teams with polished branding and well-planned narratives."

Memecoins Leading the Charge in Rug Pulls

Gherghelas notes that the nature of rug pulls is evolving, with memecoins taking the spotlight in 2025. In the first quarter of 2024, most rug pulls originated in DeFi protocols, NFT projects, and memecoins, while in the same timeframe in 2025, memecoins have been the main culprit.

One of the recent high-profile cases of a rug pull involved Libertad project's native Solana token, Libra (LIBRA). The token surged to a market capitalization of $4.56 billion on Feb. 14 after Argentina's president, Javier Milei, endorsed it. However, the token plummeted by over 94% after Milei deleted the post, leading to accusations of a pump-and-dump scheme.

"Rug pulls and exit scams continue to pose a persistent threat, especially in ecosystems where projects can quickly gain traction through hype and then vanish with user funds overnight," said Gherghelas.

Spotting the Red Flags for Rug Pulls

Gherghelas highlights some red flags that could indicate a project is a rug pull. These include a sudden spike in unique active wallets without a valid reason, unusually high volume paired with low user activity, unverified smart contracts, limited GitHub activity, anonymous developer teams, DApps that spike overnight, among others.

"As the industry matures, so do the tactics used by bad actors. But the tools available to users are also getting stronger," Gherghelas said. "While rug pulls may never be completely eradicated, their impact can be significantly reduced when users are equipped with the right information."

Overall, the crypto landscape continues to evolve, with rug pulls becoming less frequent but more damaging when they do occur. As investors navigate the volatile market, staying informed and vigilant is key to avoiding falling victim to rug pulls and exit scams.