“I take out my crypto magician hat, summon me to help you detect rug pulls before the disaster” 😹 LOL I'm joking! Magic doesn't work with crypto!
⇒ Analyze the project's liquidity
⇒ Analyze the contract, check if it is audited
⇒ Check if it is possible to sell the token after having purchased it (Necessary for new tokens)
⇒ Check if the Top 10 holding addresses can dump the prices
⇒ Use pocket Universe to simulate the first transaction, to see if the address is malicious or not.
⇒The community
💡This content concerns much more those who want the next x100 or x1000 by joining the communities of new projects often on Telegram (degens), or the launch communities of new projects...
The projects already on the scene known to the public do not need all this analysis, but rather profitability and security analysis.
🔶Analyze the liquidity of the project and the contract:
First, you need to check whether the liquidity is locked or not. And whether the contract is audited or not. Everything starts from there... If it’s not locked or audited, at any moment, a rug pull can arise and crush you.
Do you know how to do it?
Otherwise, I recommend a few very simple and very powerful tools, TokenSniffer or GoPlus Security...
I'm not going to give you a tutorial on using these two platforms right now, maybe another time in video content, but try them for now and you'll see the pile of information they will give you on the projects.
🔶 Check if it’s possible to sell the token after purchasing it:
You may find it strange, but you’ve never dealt with this problem. You can buy but you cannot sell because the developers have deliberately disabled the ability to sell the token. That’s how you are condemned, hand and foot tied to carry a stone forever.
Try TokenSniffer, I’ve mentioned it for the second time in this article, it's an all-in-one that includes the ability to interact with Honeypot for the selling simulation...
🔶 Check the Top 10 holding addresses:
Copy the contract, go to etherscan if it's an ERC20 token or bscscan if it's a BEP 20… paste the contract in the search bar and the token will appear.
Then go into the “Holder” section and check who the biggest holders are… if the biggest holder is the burn wallet, there’s no major issue. But if the biggest holders are just simple wallets, avoid them.
🔶 Pocket Universe; the avant-garde.
Although the protocols mentioned above like GoPlus Security will tell you if a contract is malicious, Pocket Universe is a very effective plus (an extension to activate in your browser) Try one or the other, you’ll only have an additional layer of security, and that’s not nothing.
🔶The community
You see those poorly structured projects, which in their Telegram channel don’t really respond to messages and complaints from users, and if a user criticizes them, they will be banned from the community, those projects that have a ton of followers on social networks but when they make a post, it’s with difficulty they generate engagement, those projects where in their Telegram or Discord community, discussions are only about “When Lambo” or “To the moon 🚀”...
Before trying to make the next x1000, make sure to have eyes in the back of your head, don’t rely on marketing, hype, or narrative. Nowadays, making even a x100 is almost impossible, unless you have top-tier information, but it is possible to prevent unnecessary loss by having the right information and looking for the right reasons to invest.
Stay safe 🛡️!