Rug Pulls In Crypto Market Declining But Becoming More Devastating
The crypto market seems to be clocking fewer rug pulls as compared to the previous year. This is according to data from blockchain analytics company DappRadar, which has reported a significant 66% drop in occurrences in the year 2025 as compared to 2024. While the frequency of such incidents reduced, the financial aftermath was felt more deeply due to the escalating size of each rug pull.
Early into 2024, the crypto market recorded 21 separate rug pull incidents. Fast forward to 2025, the first quarter of the year noted only seven instances. However, the Web3 ecosystem wasn’t spared as it reportedly lost a hefty $6 billion to rug pulls as stated by DappRadar’s report.
The Real Culprit Behind The Losses
According to the same report, the colossal loss can be largely credited to the collapse of Mantra’s OM token. This incident alone accounted for a whopping 92% of the total amount lost to rug pulls. This has been denied strenuously by the founders who refuse to take responsibility for the collapse, vehemently denying any instances of a rug pull.
For comparison purposes, 2024 three months into the year, losses from rug pulls were far less damaging, causing just a $90 million dent in the crypto market. DappRadar’s Sarar Gherghelas mused that this shift could indicate that, while rug pulls are becoming less frequent, they are getting much more damaging on each occurrence.
The Evolution Of Rug Pulls
The nature of rug pulls has been evolving over time. In the first quarter of 2024, most rug pulls were sourced from DeFi protocols, NFT projects, and memecoins. However, most rug pulls in 2025 occurred with memecoins. With the dynamics changing, it would seem that rug pulls have become a part of the cryptocurrency market’s natural order of business.
High-Profile Cases Of Rug Pulls
Notwithstanding these changes, some high-profile cases stand out. One of the noteworthy examples is the Libertad projects native Solana token, Libra (LIBRA). This coin rallied to a market capitalization of $4.56 billion on Feb. 14 after Javier Milei, Argentina’s president, posted about it.
However, the token plummeted by over 94% after Milei deleted the post. This drastic event aroused suspicions of a possible pump-and-dump scheme. Rug pulls and exit scams are a persistent problem, especially in ecosystems where hype can quickly propel a project to high market traction. Such projects can vanish overnight with user funds.
Balancing The Scales
Despite growing awareness and the emergence of tools for detecting suspicious activities, rug pulls remain a nagging problem. This is witnessed more in newly launched token ecosystems and DeFi. Analysts are increasingly calling for industry players to invest in tools that can equip every user with accurate information for decision-making to avoid falling victim. As such, users are urged to be extra vigilant and look out for red flags. These include a sudden spike in unique active wallets without a clear reason and unusually high volume coupled with low user activity. Additionally, projects without a verified smart contract, limited GitHub activity, or anonymous developer teams should trigger alarm bells in the mind of any prospective investor.
Closing Remarks
As the industry matures, so are the tactics used by bad actors becoming more sophisticated. Nonetheless, the tools available to help users navigate safely in the chaotic crypto market are also becoming more potent. Even in the face of rug pulls that might never be entirely eradicated, their impact can be widely mitigated by helping users take necessary precautions and making informed decisions. Fingers crossed, the industry will heed the call and rise to the occasion.
