How to Trade and Understand Rug Pulls in Meme Coins on Solana in 2026
Trading meme coins on Solana requires understanding both how these tokens are created and how scams like rug pulls operate. A rug pull happens when developers or malicious actors create a meme coin, add liquidity on decentralized exchanges like Raydium or pump.fun, then drain that liquidity, leaving investors with worthless tokens. To trade safely, you need to know how token supply, authorities, and liquidity work in these launches. This article explains key concepts from token creation to typical rug pull red flags, helping traders make informed decisions. Creating a meme coin on Solana involves setting up a new token with a specified supply and authority controls.