Scammers create coins and then withdraw liquidity and steal the trader's liquidity.
They might get angry because I'm going to expose their scams.
Here's How to Protect Yourself Before You Lose Your Money
The bull market has started.
Meme coins have taken over the trend, even trending on TikTok, Twitter and other platforms.
But with all this excitement comes scams from fraudsters ready to siphon off your cash.
Even professional traders fall for these scams.
The credit goes to the increase in scammers.
Thanks to the infamous PumpFun platform.
With so many coins being created daily, liquidity is being withdrawn unnoticed.
The sheer number of meme coins makes it difficult to find hidden gems.
According to Dune Analytics, only 1.4% of the tokens launched on PumpFun make it to Raydium.
What's worse is that many of these apps eventually crash, further narrowing the pool of safe choices.
Here's how these charts actually work.
First a new coin appears on PumpFun and almost immediately makes its way to Raydium.
Here's how it works:
New wallets funded through CEX start buying the coin giving the impression of real holders.
These wallets remain unrelated, making the activity appear organic. But there is a catch.
- There is no real promotion or marketing behind the increase in size.
> Traders, noticing the growth, turn to @bubblemaps to verify the currency's legitimacy.
Wallets are unpegged, the coin supply is distributed evenly, and no single holder has a large stake.
Everything looks clean at this point, traders feel confident and continue their analysis, convinced that the currency is strong.
3. After that, the coin owners start investing through advertisements.
From it
Connect with influencers and offer currency
These KOLs, unaware of the scam, start promoting the coin to their followers who trust their recommendations, step in and start trading.
As a result, trading volume increases, market cap rises, and the price quickly climbs the trending list on Dexscreener.
Let’s break down exactly how the rug pull happens. By this time, many traders stop checking platforms like Bubble Maps, which is exactly when all the previously purchased coins start to accumulate in one wallet, waiting for the right moment to get rid of them once the liquidity accumulates.
There's a newer tactic gaining momentum.
Instead of consolidating the currency into one wallet, scammers use hundreds or even thousands of wallets to dump liquidity.
Which makes it easy for scammers to implement on a large scale.
How do we avoid falling into this trap?
We are connected to Allah
When you discover the coin from PumpFun has risen,
» Go to the currency page and check the comment activity.
An organic currency usually generates dozens of diverse comments, discussing things like:
like
- DEX Payments
- Banner ads
-Other activities.
If you don't see this type of reaction, but the currency is still going up,
This means it's a red flag. You'd better stay away from it.
One of the easiest ways to spot scams is to check the initial buyers of the coin.
Sometimes real users leave a few comments and like posts.
Scammers use new accounts with no previous activity on PumpFun.
Pay close attention to how you fund your first portfolios.
These accounts are funded via CEX, where the first transaction is the purchase of the currency.