A rug pull is when the people behind a token pull out the value and leave holders with nothing. Often the team drains the liquidity pool, or dumps a huge hidden allocation, and the price goes to zero in seconds. The best defense is spotting the signs before you buy.
Look at who holds the supply. If a few wallets control most of the tokens, they can crush the price the moment they sell. Concentrated ownership is the single loudest warning sign of a token built to be dumped on you.
Then check the liquidity. Is it locked, and for how long? Unlocked liquidity means the team can remove it whenever they want, which is the classic rug. An anonymous team, endless minting rights, and a contract nobody has reviewed all stack the odds against you.
None of these prove a scam on their own, but they combine into a risk you can measure. When several red flags line up, the responsible move is simply to pass. There is always another trade, but the money you lose to a rug does not come back.
Concentrated holders, unlocked liquidity, an anonymous team, and unlimited minting are the classic rug flags. When they stack up, walk away.
Tip. If you cannot explain who could dump on you and how the liquidity is protected, you do not understand the trade well enough to be in it.