Crypto Rug Pulls Drop but Hit Harder | DappRadar Analysis
Edited By
Anika Roberts
Recent insights reveal an alarming shift in the crypto market's vulnerabilities. DappRadar's report indicates that while rug pulls decreased by 66% in 2025, the financial fallout soared to nearly $6 billion, largely due to the controversial collapse of the Mantra OM token. As financial losses grow, so do concerns about ongoing risks in the market.
Crypto Market Insights
Rug pulls have been a persistent threat in the cryptocurrency scene, primarily fueled by regulatory gaps. Commentators point out that while they may happen less frequently, the financial implications are more severe than ever.
Analyst Sara Gherghelas highlighted that incidents are often linked to memecoins, known for their volatility and lack of substantial backing. She reports, "Rug pulls are less frequent but more devastating now." Users on forums suggest staying vigilant, especially when observing sudden activity spikes or encountering unverified smart contracts.
The Financial Toll
66% decrease in rug pulls year-on-year, down from 21 in 2024 to just seven in 2025.
$6 billion lost due to fraudulent schemes this year.
The Mantra OM token incident remains controversial; founders deny any wrongdoing, intensifying discussions around accountability.
"Degens are always active," a forum member noted, highlighting the relentless nature of crypto enthusiasts who continue to engage with high-risk assets despite the dangers.
Warning Signs
Users are urged to recognize key red flags in crypto projects. These often include:
Sudden spikes in trading activity.
Unverified smart contracts.
Promises of unrealistic returns.
In response to concerns, tools for awareness and detection are reportedly improving, but many believe a paradigm shift in user responsibility is essential. One user commented, "This sets dangerous precedence for the future of crypto."
Key Insights
🚨 Rug pulls are less frequent, but losses are greater.
📉 Financial loss impacts increased nearly 300% this year.
✅ Community vigilance and detection tools are vital for safety.
🌐 Stay educated: Learn how to spot deceptive practices and safeguard investments.
As crypto enthusiasts navigate these turbulent waters, the question remains: will the community step up its defenses against these evolving threats? It's a risky game, but for many, the rewards still warrant the gamble.