Right now, memecoins are gaining incredible popularity among all traders.
However, scammers have been interested in this sector for a while!
They're making over $30k daily off of traders using the well-known platform @pumpdotfun.
The platform has attracted such a lot of attention and a huge number of tokens are created every day that scammers immediately found a place to make money.
Especially now a lot of liquidity is being injected into tokens.
Dune analytics for PumpFun show that not all tokens launched on the platform make it to Raydium.
And many of the tokens that do get listed on Raydium eventually crash to zero.
This includes scammers, who are skewing the statistics.
Even experienced traders don't realize how a token suddenly drops 99% and they get fooled.
But with the right analysis, they can be identified.
1/ I wanna explain how it all happens and how to avoid these tokens.
It all starts with creating a new wallet and funding it through a CEX or crypto-mixer.
Then, a token is created and manually injected into Raydium.
The token starts getting bought actively, as if it has real holders.
2/ When traders see coins growing, they immediately check it in @bubblemaps.
There is nothing suspicious, the wallets are not connected to each other.
The supply of tokens is distributed reasonably, no one owns a large percentage.
So now you're preparing to enter.
3/ Your Twitter page is full of KOL experts who are already actively promoting the token.
You see a lot of traders starting to support a certain token, thus making even more noise.
But no one knows that in a couple of seconds it will instantly drop to zero and everyone will lose their money.
4/ Scammers are coming in!
You see many different wallets that have decided to instantly sell all of their holdings.
Nowadays, that's quite easy to arrange.
5/ The main question: how do you avoid this?
It's simple!
• Always check the comments and look at the activity. They should all be different, not look alike—basically, they should be "alive."
• Check the first buyers of the token. Usually, users leave comments and likes.
Scammer accounts are always new and have never interacted with PumpFun before.
6/ Also, I recommend visiting their Telegram group, if they have one.
There you can see if there's a CTO or a team actively participating in discussions about the token.
If it’s a scam, they likely won’t even bother setting up a voice chat.
Pay special attention to this and stay cautious.
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