95% of New PancakeSwap Liquidity Pools End in Rug Pulls, Expert Warns

There is a worrying uptick in the number of rug pulls on PancakeSwap. DC, a well-known crypto analyst with Coin Bureau, has put a figure to it: 95% of the fresh liquidity pools you’ll find on the platform are nothing but scams. All told, he expects 2025 to see losses in the range of $2.8 to $6 billion as a result.

Rising Threat: Rug Pulls Dominate PancakeSwap

For an expert like DC, the level of chicanery on PancakeSwap is hard to match. The math is stark: out of every ten new pools put up on the DEX, nine will be exposed as schemes to siphon off capital and disappear with it. It is a sobering reality for anyone looking to get in on the next DeFi project.

What we are seeing is a byproduct of how open and unregulated these systems are. Scammers have latched onto that. With its low barrier to entry, PancakeSwap has become an easy target for those intent on running a fraudulent pool and making off with investors’ money.

Financial Consequences: Billions at Stake in 2025

When it comes to the numbers, the impact of a PancakeSwap rug pull is hard to overstate. According to DC, 2025 could be a particularly costly year, with total losses from such deceptions running between $2.8 and $6 billion. It is more than just a hit to the individual’s wallet; these are figures that put the reputation of the entire DeFi industry at risk.

The bottom line is that without some form of stronger safeguards, trust in PancakeSwap and its peers will likely continue to wane. In light of how common these rug pulls have become, there is a growing chorus of voices in the community and among experts demanding better due diligence and more transparency on new liquidity pools.

Expert Calls for Vigilance in DeFi

There is no need to look further than the recent string of PancakeSwap rug pulls for a case in point, as DC of Coin Bureau has made clear. It is a message the crypto world would do well to heed: any new liquidity pool demands some hard-nosed due diligence before money is put on the line, particularly on exchanges where you are more likely to encounter bad actors.

What we are seeing is a view shared by many in the DeFi space — that knowing what one is up against is just as important as the technology itself. With the kind of scams we are facing these days, it is the well-informed and the careful who will be best positioned to avoid taking a hit.

Source — Coin Bureau: https://www.youtube.com/watch?v=Nlti3UK2DwY

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