How to Identify Rug Pulls in NFT Markets Using Utility Metrics | Flash News Detail

On April 19, 2025, Leonidas, a prominent figure in the NFT community, shared a critical metric for evaluating the legitimacy of NFT mints via a tweet. He proposed that the percentage of funds spent on utility for holders since the mint date is a key indicator of whether a project is a rug pull or a genuine effort to provide value. This statement was made at 10:32 AM UTC, and it quickly garnered attention across the crypto trading community, as evidenced by the retweet by @TO at 10:45 AM UTC (Source: Twitter). The tweet highlighted that if a year passes and a very low percentage of funds has been used to enhance utility, it could signal a potential rug pull. This metric has significant implications for traders, as it provides a quantifiable measure to assess the risk associated with holding certain NFTs. For instance, the BAYC (Bored Ape Yacht Club) project, which minted on April 23, 2021, has spent…