Scams in the crypto world are becoming common as blockchain is rapidly gaining global adoption.
While there are many types of scams which can include phishing (a scam where attackers deceive people into revealing sensitive information or installing malware such as viruses, worms, etc.), Ponzi schemes, and others, a popular type includes crypto rug pulls.
In this article, we will discuss some of the biggest crypto rug pulls, specifically the top 5 biggest crypto rug pulls of 2024, and list some ways to stay safe from future scams in the crypto world.
What is a crypto rug pull?
A crypto rug pull is a popular scam frequently associated with new, presumably promising cryptocurrency projects with little transparency or anonymous developers. In this scam, the developers abruptly abandon a project, taking all the invested funds with them, leaving investors with worthless tokens and effectively “pulling the rug out from under them,” resulting in significant losses for those who invested in the project.
Now let’s dive into the list of rug pulls in crypto that happened in 2024.
1. DIO token pump-and-dump
Jump Trading was accused of running a pump-and-dump operation using the Decimated (DIO) token, which was originally meant for a Fracture Labs gaming project.
To stabilize the launch on HTX (previously Huobi), the developer lent Jump millions of DIO tokens. Jump liquidated all of its holdings at the highest price after hiring influencers to increase the token’s popularity, which resulted in a steep decline as the token’s value fell. The DIO tokens were subsequently returned to Fracture Labs when Jump bought them back for a quarter of their peak value, thus depreciating their worth.
At the time of writing, the DIO token is trading at $0.007276, a 98.8% decrease from its all-time high of $0.5879.
2. Froggy coin rug pull
Another coin that makes it to the list of biggest rug pulls of 2024 is the Froggy (FROGGY) coin.
FROGGY coin’s rug pull in early 2024 revealed a traditional decentralized finance (DeFi) fraud. FROGGY coin was marketed as a meme token that catered to social media users. Its humorous branding and promises of quick profits drew numerous investors. On websites like X and Reddit, developers generated excitement by portraying the token as a community-driven initiative with strong support.
The liquidity pool was financed by first investors, which increased the FROGGY token’s worth and legitimacy. The developers quickly drained liquidity and crashed the token’s value after deciding that enough money had been accumulated.
At the time of writing, the FROGGY token is trading at $0.0000000073964, a 99.95% decrease from its all-time high of $0.00001577.
3. The Hawk Tuah rug pull
On December 4, 2024, social media celebrity Hailey Welch introduced Hawk Tuah (HAWK), her meme coin into the world of crypto. Within 20 minutes of debut, the cryptocurrency’s value plummeted from $500 million to $60 million.
There was a big backlash from the online community as well as legal authorities. Reportedly, U.S. law firm Burwick Law filed a federal lawsuit against Hailey Welch and three other individuals behind the lackluster HAWK meme coin.
At the time of writing, the HAWK token is trading at $0.0006404, a 71% decrease from its all-time high of $0.0022413.
4. Sharpei Solana meme coin rug pull
Sharpei (SHAR), a cartoonish image of a Shar Pei dog, was launched in October 2024. Thanks to a push from the social platform’s X influencers, sometimes referred to as “key opinion leaders” or KOLs, it swiftly surged to a $54 million market valuation.
The project’s presentation deck leaked as it reached its apex, claiming that its developers had onboarded “50+ tier 1 KOLs” and planned to collaborate with exchanges and other ventures. The paper lists several influencers who have denied any connection to the effort.
Bonk key contributors Kadense and Nom refuted the leaked deck’s assertion that SHAR would enter into a strategic alliance with popular meme coin BONK after reaching a $100 million market value. In the meantime, Joji, a pseudonymous influencer with over 200,000 followers, was also implicated. The influencer disputes this accusation, posting a snapshot of Telegram communications that allegedly refuted a collaboration.
SHAR fell from $54 million to $35.5 million during this time. Insiders must have been alarmed by this since, after a huge, well-planned sale, the token fell 96.3% to a market worth of $1.3 million in under two seconds.
At the time of writing, the SHAR token is trading at around 25% below its all-time high of $0.001314.
5. GUNIT hack and rug pull
Rapper 50 Cent, whose real name is Curtis James Jackson III, said that his website and X account were compromised to advertise a fake cryptocurrency coin called “GUNIT.” Hackers used his large fan base to inflate the token’s value before it crashed to $0.00016.
Although the real trade volume was $19.4 million, Jackson told his 32.8 million Instagram followers about the attack and claimed that the hackers made $300 million in 30 minutes. GUNIT was sold in large quantities by several wallets, with four accounts selling over $100,000 apiece. Jackson made it clear that he was unrelated to the cryptocurrency fraud.
At the time of writing, the GUNIT token is trading at $0.00002133 which highlights a 100% decrease from its all-time high of $0.05085.
How to remain safe from rug pulls in crypto?
To avoid becoming a victim of the top rug pulls in cryptocurrency, you need to take several steps to safeguard yourself.
First, avoid trading tokens on decentralized exchanges unless the official project has shared the contract address of the token on its social platforms. Even after that, you should look into the project’s liquidity and see if a few wallets aren’t holding most of the supply, as that is a clear indication that a project can dump its tokens on you anytime it wants.
Also, if tokens are listed on centralized exchanges make sure to read their fundamentals and any changes to their overall supply, as increasing token supply can significantly affect a token’s price.
All in all, it is very important to do your research to avoid being involved in the next big rug pull in the crypto world.
