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Liquidity on PumpSwap

A liquidity pool is a collection of funds locked in a smart contract to enable trading of a specific pair of cryptocurrencies.

Fire Doji avatar
Written by Fire Doji
Updated over 3 weeks ago

When a coin migrates to PumpSwap, its liquidity pool tokens are locked and burned. This means:

  • Liquidity cannot be removed manually.

  • The only way to withdraw liquidity is through trading.


Can the Developer Rug?

❌ No, the dev cannot remove liquidity to zero since it's permanently locked.

⚠️ Yes, if the dev holds a large number of tokens, they can sell them, causing a sharp price drop.

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