Crypto Rug Pulls Decline in Frequency but Increase in Impact, Reports DappRadar
In a recent analysis by blockchain analytics platform DappRadar, it has been revealed that while the number of crypto rug pulls has significantly declined in 2025, the financial devastation caused by these scams has grown exponentially. The report, released on April 16, provides a comprehensive overview of the changing landscape of cryptocurrency scams, illustrating a shift in tactics among perpetrators.
Decrease in Frequency, Increase in Severity
According to DappRadar, there has been a staggering 66% decrease in rug pulls year-on-year, with only seven reported incidents in the early months of 2025 compared to 21 in the same period of 2024. Yet, the report highlights a concerning trend: as the occurrence of these scams decreases, the total financial losses have escalated. The Web3 ecosystem has suffered nearly $6 billion in losses attributed to rug pulls since the start of the year, an overwhelming 92% of which is linked to the collapse of Mantra’s OM token. The founders of Mantra have publicly denied that the incident qualifies as a rug pull.
In stark contrast, the same early timeframe in 2024 reported total losses of approximately $90 million from rug pulls. “This shift suggests that rug pulls are becoming less frequent, but far more devastating when they do occur,” stated DappRadar analyst Sara Gherghelas. She emphasized that the scams are now more sophisticated, often orchestrated by teams with professional branding and strategic narratives that can mislead investors.
The Evolution of Rug Pulls
Gherghelas noted that the nature of rug pulls is undergoing significant evolution. The analysis revealed that while the principal sources of rug pulls in early 2024 emerged from DeFi protocols and NFT projects, by early 2025, the majority have been associated with memecoins.
A notable case involved the Libertad project and its native token, Libra (LIBRA), which experienced a meteoric rise in market capitalization to $4.56 billion shortly after a social media post by Argentina’s president, Javier Milei. However, following the deletion of that post, the token plummeted by over 94%, sparking allegations of a pump-and-dump scheme.
Persistent Threats and Warning Signs
Despite an increase in awareness and the development of tools aimed at detecting suspicious behavior, rug pulls continue to pose a serious threat, particularly within ecosystems characterized by rapid developments and intense market hype. “Rug pulls and exit scams remain a persistent threat, especially in environments where projects can gain traction quickly and vanish with user funds overnight,” Gherghelas explained.
To help investors stay vigilant, Gherghelas highlighted several red flags that could indicate a potential rug pull, including sudden spikes in unique active wallets without clear justification, high trading volumes coupled with low user activity, and projects with unverified smart contracts. Additionally, she pointed out that limited activity on platforms like GitHub or the anonymity of development teams can also serve as warning signals.
As the crypto industry matures, Gherghelas stressed that while the tactics employed by fraudsters may become more sophisticated, users also have access to increasingly effective tools for safeguarding their investments. She concluded, “While rug pulls may never be fully eradicated, their impact can be drastically reduced when users are equipped with the right information.”
Conclusion
The DappRadar report sheds light on the evolving dynamics of cryptocurrency rug pulls, indicating a decrease in incidents but an alarming increase in their financial repercussions. As the landscape continues to change, investors are urged to remain vigilant and informed to avoid falling victim to these malicious schemes.
For more information on crypto trends and safety tips, visit DappRadar and explore their extensive resources dedicated to the blockchain community.
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