Enter Platform
← Glossary
Security

CTO Rug

A second extraction following a community takeover. New operators accumulate supply during the CTO narrative, then dump as if they were the original deployer. The CTO structure provides the same supply-and-exit mechanics as the original rug, with the community's trust as additional cover.

See also
Culture CTO (Community Takeover) A community-led continuation of a rugged or abandoned token. The rare CTOs that succeed (POPCAT, BILLY) are loudly visible; the majority re-rug under new operators. Default to scrutinizing new operator wallets with the same forensic process as any fresh launch. → Security Soft Rug A rug executed by the developer selling their pre-allocated supply into existing liquidity without touching the pool. Technically legal in most jurisdictions. Produces the 'death by a thousand cuts' chart — lower highs, lower lows, ATH formed early and never retested. The most common form of extraction. → Security Bundle Dump A coordinated sell by multiple wallets funded from a common source, producing a chart pattern identical to a hard rug. Distinguishable from a hard rug only via Bubblemaps cluster analysis; the chart crash looks the same regardless. →
← Back to Glossary Search all content →