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We will share in this post tips you must follow to spot and prevent a rugpull from happening, as well as things you must take before buying any altcoin.
So let’s get started
First thing to do is to check top 10 wallets on Etherscan/BSCScan. If there are airdropped wallets (wallets that never bought) having more than 2% supply, or a few with 5% or more supply, that is a red flag
Second thing one should do is to check if liquidity is locked or burned – TokenSniffer does this smoothly (not affiliated). If it’s not locked during the time you plan to hold, or not burned, it’s a red flag
Third thing one should do is to check taxes & check if the contract is renounced or not, especially check if taxes are hard coded (some contracts can later set tax to 99%).
TokenSniffer does this smoothly (not affiliated).
A good thing is to do some research on deployer, to check connections to of the wallet (if it has connection from fishy wallets, etc. this data stays on Blockchain)
Conclusion: Never do blind ape, always do research on the team, even if KYC-d or doxxed on Pinksale, some people just find “mules” or crack heads to get them to do this.
Often newbies, or people that didn’t trade much blind ape, or trust someone that knows somebody. These 5 steps will save your hard earned money, money that are better elsewhere.