What scammers do is launch a new token, attach a liquidity pool to it, and wait for people to start buying. Once enough people have bought the token, the scammer pulls the liquidity pool, runs off with the money, and you're left with a bunch of worthless aircoins.
Do your own due diligence / research (aka DD / DYOR)
One of the best things you can do to avoid scams is to do proper due diligence.
What does this mean? It means looking at who created the tokens, checking the website, checking the code, getting to know the team, etc.
It basically means doing research on the project before you get into it.
This is something you should be aware of, and some red flags are.
This should be fairly easy, and if the site looks rushed and the pages aren't developed yet, that's a red flag!
One technique is to get the best results by going towhois.domaintools.comand enter the domain name to check when the domain name was registered for the website.
If the domain name was registered within 24 hours or less after the project was launched, you can be fairly sure it is a scam.
Scam programs often appear like mushrooms out of nowhere, usually launching within a day of the following:
- A website
- A forked (copied) script for income farms, NFT markets, etc.
- Thousands of social media followers
- Airdrops/giveaways with an unusual number of followers
2.Check their social media
Good programs,will hire professional social media managers, writers and other content creators.
Branding will be standardized and attractive. The text will be clear and concise.
Often, links to quality content, documents and informative articles about the program will also be provided.
Scam programs,on the other hand, are usually unable to check any of these things.
They will have.
- Stolen images and poor quality images
- Grammatical errors and unattractive "spam" (like and @ 2 friends, join our TG and put your ETH address below!)
- No links to relevant information about their projects, etc. 3.
3. investigate their followers on Telegram and Twitter Telegram . Twitter .
The cost of stiff fans and fake accounts is very low.
Accounts are usually not very old, created within a week or possibly lasting a few months.
They will have ridiculous id names, such as "Ray12321dadafew"
- They usually have the same name as their username
- No information
- Fake photos, usually of beautiful women.
- Their tweets don't make any sense and usually have a lot of hashtags and retweets.
All of these same things usually apply to Telegram accounts as well
- Their usernames have a lot of numbers and boring crap in them
- Fake photos, usually of beautiful women.
- Usernames that don't make sense
4. Large wallets.
Stay away from one or several wallets holding a large number of tokens.
- Unlock the liquidity pool. Even if they lock the liquidity pool, they can unlock it if the contract allows it. You can go deeper into the contract, but this usually requires programming knowledge.
- No audit. If the token contract is not audited by a reputable company, then the chances of Divestment Pool or the Pixie will most likely exist. Beware!
5. Minting feature
The minting feature allows the contract owner to add more tokens at any time!
Sometimes the owner will mint a bunch of tokens for himself and then sell them, thus depressing the price of the tokens and allowing him to run away with all the money.
Is the minting feature always a bad thing?
No, not always. Some use cases make sense and are needed.
A minting function is needed, especially if each block minted tokens for rewards - think of revenue farms on DEXs like Pancakeswap and Uniswap where rewards have to be minted from the function.
How secure is it when there is a mint function?
Always make sure the minting function is required.
Yield Farms and similar projects will requiremintingcapabilities, as mining requires this type of functionality in order to issue rewards.
Note - If you are trading a token that already has a maximum supply but it has a"mint feature", then it should set off alarm bells!
Soft run road-mouse barn smashing the plate
These are much harder to detect!
Often, scammers will create a token that looks perfectly fine, but they will distribute large amounts of tokens into hundreds of wallets that only they can access, creating a rat run.
For example, distributing 20% of the coins to 500 wallets at 0.04% each. As people start buying coins and the price goes up, they will slowly start shipping them out. People continue to buy and they will keep shipping until all their wallets are empty.
hese are very difficult to detect, but the most reliable way to detect them is to use Etherscan or BscScan to check wallets with the same percentage number of tokens.