How to use our tool filter to avoid Paixiu,Divestment pool and other scams
Unfortunately, the world of cryptocurrencies, DeFi and decentralized exchanges (DEX) is rife with scams and various means of defrauding traders and investors of their money. Often, these scams are referred to as Pixie and Divestment Pool.
The vast majority of these scams occurred on Ethereum (Uniswap or SushiSwap) or Binance Smart Chain (PancakeSwap).
In this article, we will learn how these scams are implemented and some of the strategies you can employ to avoid them.
Our goal in writing this content is to help our community and ListingSpy users avoid losing money to scams. Let's learn to see the scam for what it is and how to avoid him!
How scams work
When you buy a token, it is usually added to a liquidity pool.
A liquidity pool is a group of funds locked in a contract that provides you with a "pool" for you to buy and sell tokens. Automated market makers use pools to make fast and efficient trades, rather than waiting for someone to match your buy or sell.
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.
Typical psychology (open for business brothers!) (One times, twice, five times, hell, Divestment Pool.!)
For investors who have not had the energy to work hard and have been repeatedly cut off, Pixie is usually less obvious and therefore more difficult to spot, even for experienced cryptocurrency traders.
Experienced traders usually fall victim to honeypots because they see a token that keeps going up and can't resist rushing in to pike it.
How does the Pixie work?
Scammers insert a piece of code into the contract that allows only their own wallets to withdraw from the token contract.
They give out coins and people start buying them. You see the tokens keep going up and you think, that's awesome. It keeps going up and there are few or no red candles on the chart. You may look at it for a while but finally can't resist making a bid. Then you find out that the coin can only be bought and not sold because the contract states that no one can sell except for a specific wallet.
Your money is trapped forever and there is nothing you can do about it. The scammers can Divestment Pool. and roll your money away at any time.
Be warned- some of these scams will last for days or weeks and people think they have found a coin of value that is about to go to the moon and then keep buying.
What can you do to try and avoid scams?
Learn to use the tools
In addition to due diligence, there are tools that can help you detect red flags and avoid common scams.
Here's what they are used for.
First, make an ID for your token and enter it into the relevant blockchain scanner (BscScan/Etherscan).
On the next page, go to "Token Tracker". You will see a tab that reads "Holders". There you can see all wallets and liquidity pools holding tokens.
Another excellent tool isToken Sniffer. Enter the token ID in the upper right corner to see the results of the "automated contract review". If any alerts appear, stay away from the project.
"No previous similar token contract" is sometimes a false alarm, because many projects now use contract templates, and a unique contract simply means it was written without using a template.
However, these custom contracts carry an additional risk of vulnerability exploitation because they are not thoroughly tested and may have unknown vulnerabilities.
Observe the transaction
If you find no wallets for sale or only one or two wallets for sale, stay away from it. It is likely a PooCoin. If many wallets are for sale, then it is probably safe and not a Pixie.
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.
Using ListingSpy new "low liquidity" filter
We continue to improve the scam filter to provide a better service to our users. So far, it's working well and is removing a lot of information about fraudulent token contracts.
These tokens are being removed based on low volume, number of transactions, holders and liquidity. This already protects you from 90% of scams!
However, the scam filter is not perfect and many scams may still occur, so we always recommend that you do your own research before considering any token.
New! Low Liquidity Filter
With this filter, you can quickly reduce the number of new tokens available for your analysis on PancakeSwap from about 2,600 to just a few hundred.
All $0 liquidity (and other low liquidity) tokens will not be displayed!
To sum up
The crypto world is like the Wild West in many ways; full of potential and amazing rewards, but also somewhat lawless and full of scammers and potential threats.
Most new tokens should be vigilant!
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