Crypto Rug Pulls Decline but Become More Devastating | DappRadar Reports Significant Losses
Edited By
Liam O'Donnell
A recent report from DappRadar reveals a sharp decline in the frequency of crypto rug pulls—down by 66% year-on-year. However, the financial toll from these incidents has skyrocketed, with nearly $6 billion lost in 2025 alone, raising alarms in the crypto community.
Understanding the Current Landscape
While rug pulls have decreased—with only seven instances recorded in 2025 compared to 21 in early 2024—the losses incurred are alarmingly high. The Mantra OM token’s collapse, which its founders deny involved wrongdoing, has drawn significant scrutiny. Analyst Sara Gherghelas notes that while the incidents are less frequent, they are often linked to "meme coins," making awareness and detection tools crucial.
"Rug pulls remain a persistent threat, and users need to be vigilant," Gherghelas said.
Community Reactions and Concerns
Comments from the crypto community highlight ongoing concerns about the lack of regulation in the industry. A user emphasized, "Rug pulls always a threat in crypto because of lack of regulations." This sentiment echoes a broader worry among crypto enthusiasts.
Meanwhile, there’s a mix of optimism and caution. One commenter noted, "Degens are always active," suggesting that engagement in high-risk projects continues unabated. Despite the risks, some users are looking for ways to navigate the market responsibly.
Key Insights from the Dialogue
🔍 Risk Awareness: Users are encouraged to stay informed about potential scams and look out for red flags, such as sudden activity spikes or unverified smart contracts.
⚠️ Trends in Losses: Significant financial losses indicate a troubling trend; nearly $6 billion was lost due to rug pulls this year.
💡 Improving Detection: Despite fewer incidents, tools for detecting malicious projects are advancing, giving hope to many investors looking to avoid pitfalls.
What Lies Ahead?
As the crypto community grapples with these challenges, the conversation around regulation continues to unfold. Will more stringent measures emerge to protect investors? Only time will tell.