In 2025, crypto rug pull financial losses have surged 6,499%, reaching nearly $6 billion despite a 66% drop in incident frequency. A major contributor is the Mantra (OM) project, accounting for 92% of losses. Rug pulls are becoming more sophisticated, predominantly occurring in the memecoin sector this year, compared to earlier instances in DeFi and NFTs.
According to DappRadar, financial losses from crypto rug pulls soared by 6,499% in 2025, reaching nearly $6 billion, despite a decline in reported incidents. A rug pull occurs when insiders inflate the value of a cryptocurrency project, only to rapidly sell their holdings, leading to the project’s collapse and significant investor losses.
The spike in losses is attributed primarily to the Mantra (OM) crypto project, which represented 92% of this year’s losses. The value of OM token plummeted dramatically from $6.35 to $0.37, following the transfer of 43.6 million OM tokens, worth $227 million, to exchanges by at least 17 wallets.
DappRadar’s findings indicate that while the incidence of rug pulls has decreased from 21 in early 2024 to just 7 reported cases this year—a 66% year-over-year drop—the impact of these scams is increasingly severe. These schemes are becoming more advanced, indicating a worrying trend of sophisticated fraud with well-branded presentations and strategic narratives.
Most rug pulls in early 2024 were linked to decentralized finance (DeFi) protocols, NFT projects, and memecoins. Conversely, 2025 has seen a predominance of rug pulls occurring within the memecoin sector, highlighting a shift in the type of projects under scrutiny. Investors are advised to exercise caution and conduct thorough research prior to engaging in crypto investments.
