In early April 2025, a newly launched cryptocurrency project called XToken promised the moon — literally. Backed by flashy social media ads, Telegram hype groups, and paid influencer shilling, it quickly raised over $2.3 million in just 48 hours through a presale.
But within 5 days of launch, the entire project vanished.
No website. No team. No liquidity.
Welcome to the latest crypto rug pull of 2025 — and here’s what you can learn to avoid falling into similar traps.
🚨 What Happened?
XToken claimed to be launching a revolutionary “DeFi space protocol” with real-time staking rewards and NFT-based governance. However, after collecting presale funds, the dev wallet dumped all tokens and drained the liquidity pool.
On-chain data shows:
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The deployer address had no audit history.
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Tokens were distributed unevenly: 85% went to the dev wallet.
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The contract had a hidden “emergency withdrawal” function.
All classic red flags.
❌ Why People Fell for It
| Reason | Explanation |
|---|---|
| Social proof | Dozens of fake X/Twitter accounts praised the project. |
| FOMO tactics | “Only 100 spots left” in presale messages created urgency. |
| Influencer marketing | Paid YouTubers called it “the next 100x coin”. |
| Technical jargon | The project whitepaper was filled with buzzwords but no clear utility. |
✅ How to Protect Yourself from Similar Scams
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Check for Smart Contract Audits
Reputable projects are audited by firms like CertiK, PeckShield, or Hacken. -
Examine Token Distribution
Use tools like DEXTools or Dexscreener to see wallet allocation. -
Don’t Trust Anonymous Teams
Look for verified LinkedIn accounts, GitHub activity, or real-world experience. -
Avoid Hype-Only Projects
If the project talks more about “going to the moon” than real technology, walk away. -
Use scam alert trackers
Platforms like RugDoc, TokenSniffer, or your trusted LaunchGems.com Scam Alerts section.
🧠 Final Thought
Crypto still offers life-changing opportunities — but for every legit project, there are dozens like XToken trying to cash in on uninformed investors. Stay educated, stay skeptical, and always do your own research (DYOR).
At LaunchGems.com, we track suspicious activity and expose potential scams before they become headlines.
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