Liquidity Lock vs Rug Pull

Quick comparison to help you distinguish these two crypto terms.

Liquidity Lock
intermediate
risk

A security mechanism that prevents a project's developers from withdrawing liquidity pool funds for a set period by locking LP tokens in a smart contract, reducing the risk of a rug pull exit.

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Rug Pull
beginner
risk

A rug pull is a crypto scam where project developers abandon a project and steal investor funds after artificially inflating token value through marketing and liquidity promises.

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