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Rug-pull red flags
The warning signs every memecoin buyer should know, in plain words, and how to check each one for free.
3. Renounced vs not renounced
What it is: "Renounced" or "revoked" means the creator gave up a permission (mint, freeze or metadata) for good. Nobody can use it again.
Why it matters: Projects often claim "renounced" when it isn’t true. Only the on-chain data counts, not a tweet.
How to check: The rug check reads mint authority, freeze authority and whether the name and logo can still change, straight from the chain.
4. Unlocked or unburned liquidity
What it is: Liquidity (LP) is the pool of coins and SOL that lets people trade. Whoever holds the LP tokens can withdraw that pool.
Why it matters: If LP is not burned or locked, the creator can pull it out in one transaction and leave holders with coins nobody can buy.
How to check: The rug check shows liquidity in dollars. Check on a pool explorer whether LP was burned or locked with a reputable locker.
5. Sudden liquidity pull
What it is: Liquidity drops sharply over minutes or hours, often to near zero.
Why it matters: This is the classic "rug": the pool is drained and the price collapses.
How to check: Save the coin to your JestSprout watchlist. It flags "Liquidity down 25%" or more since your last visit.
6. Low liquidity
What it is: Only a small amount of money sits in the trading pool.
Why it matters: Small trades swing the price wildly and you may not be able to sell without losing most of the value.
How to check: The rug check warns when liquidity is under about $5,000.
7. Top-holder concentration
What it is: How much of the supply sits in the 10 biggest wallets.
Why it matters: If a few wallets hold most of it, any one of them can dump on everyone else.
How to check: The rug check shows "Top 10 wallets hold X%". Note this can include the pump.fun bonding curve or a pool, so look at who the holders are.
8. Dev wallets and bundled wallets
What it is: The creator buys a lot at launch, sometimes spread across many fresh wallets in the same block ("bundling") so it looks like many buyers.
Why it matters: Hidden dev supply can be sold all at once. Bundles hide how much the creator really controls.
How to check: Check top holders on the rug check, then look on a block explorer for many wallets funded from the same source at launch.
9. Honeypot (can’t sell)
What it is: A token you can buy but can’t sell, usually because of frozen accounts or a trick in the token program.
Why it matters: Your money goes in and never comes out.
How to check: The rug check flags active freeze authority and Token-2022 programs, which can carry extra rules. Try a tiny test sell before buying more.
10. High transfer tax
What it is: Some tokens (often Token-2022 with transfer fees) take a cut of every buy or sell.
Why it matters: A big or changeable tax can eat most of your sale, or be raised later to trap holders.
How to check: The rug check notes when a token uses the Token-2022 program. Check its transfer-fee settings on an explorer.
11. Fake volume and wash trading
What it is: Bots or the creator trade back and forth with themselves to pump up volume numbers.
Why it matters: It makes a coin look popular and lands it on trending lists, pulling in real buyers who end up as exit liquidity.
How to check: Compare volume to the number of real holders and to liquidity. Huge volume with few holders is a warning.
12. Copycat tickers and names
What it is: A new coin reuses the name, ticker or logo of a popular coin.
Why it matters: People buy the wrong token by mistake, or think it’s an "official" version.
How to check: Always check the contract address (CA). The rug check shows the name, ticker and mint, and lists well-known tokens it recognizes.
14. Paid shills and call groups
What it is: Influencers or Telegram "call" groups paid to hype a coin, often without saying so.
Why it matters: They and their insiders usually buy first and sell into the hype they create.
How to check: Treat sudden waves of identical posts as ads. Run the rug check before acting on any call.
15. "Send SOL to get listed" scams
What it is: Someone DMs a creator offering a listing, trending spot or "fast track" if they send SOL up front.
Why it matters: Most of these take the SOL and disappear.
How to check: Listing in the JestSprout Coin Shop is free. We will never ask you to send SOL to be listed.
16. Wallet drainers and "connect wallet to claim"
What it is: Fake airdrop or claim sites that ask you to connect and sign a transaction.
Why it matters: One signature can hand over every token in your wallet.
How to check: The JestSprout rug check never asks you to connect a wallet. Never sign on a site you reached from a DM or reply.
17. Impersonation
What it is: Fake accounts posing as a project, its team or support staff, often in replies and DMs.
Why it matters: They post fake contract addresses or drainer links.
How to check: Only trust the CA posted on the project’s official account. Paste it into the rug check and compare.
18. The bonding curve (pump.fun)
What it is: On pump.fun, a coin first trades against a formula (the bonding curve) instead of a normal pool. When it fills up, it "graduates" to a real pool and the LP is burned.
Why it matters: While on the curve, "liquidity" and "top holders" read differently: the curve itself can look like a big holder.
How to check: The rug check says when a coin was launched on pump.fun and whether it is still on the bonding curve.
19. Promised returns
What it is: Claims like "guaranteed 100x", "can’t go down" or revenue shares for holders.
Why it matters: No memecoin can promise returns. Promising profits is also a legal (securities) red flag.
How to check: Read the description. The JestSprout Coin Shop rejects listings that promise returns.
Educational only. Not financial advice. No single check proves a coin is safe or a scam.