Quick pumps and dumps of memecoins are pretty common in trading.
Scammers are using more and more sophisticated ways to pull off scams, which can easily fly under our radar.
When trading, you might feel confident and not suspect a thing.
$CATDOG was one of the last major tokens that got rugged and died.
Right now, the token is trading far below its peak.
What the scammers did:
• Created fake news
• Coordinated buy calls
You could’ve gotten caught and lost all your money!
To identify scammers and their coins, we need to check well.
For this, we will need some tools.
1/ @InsightXnetwork
This tool and its advanced bubblemaps will help filter out tokens.
You need to check the interactions of the holders with each other, to do this, insert the CA of the tokens.
2/ Most token smart contracts these days are generally safe and don’t raise any red flags.
That’s because tokens are often created through PumpFun, which has its own protection system.
But it’s still worth checking the smart contract using @Rugcheckxyz just to be sure.
3/ @TrenchRadar
Go to TG bot and use following command: /bundle <CA>.
You need to verify the team and understand how they distribute all the stock between the wallets created by the bots.
Also, pay attention to the percentage bought by bots—it might not be too high and not a big deal, but if you see more than 7-10%, stay away from that token.
4/ With @gmgnai, you can check a ton of info.
From Smart Traders and wallet analysis to sniper activity.
By the way, make sure to check if the token you’re looking at has any snipers involved.
You can see this process in more detail in the video.
5/ Now that you have all the tools to analyze tokens, there’s a 95% chance you won't fall for a rug pull.
But you might ask, what about the other 5%? Well, let me tell you.
Unfortunately, sometimes it’s not the devs or the team affecting the token, but regular holders or snipers that kill it.
Every day I see this happen: a token has good volume, it’s growing, and then at some point, a sniper or an early buyer exits their position in one go.
This dumps the chart, and everyone else panics and starts selling too.
So, I’d advise you to learn how to exit trades properly if you’re someone who doesn't know how to sell your tokens the right way.
And for those who are regular traders, always aim to lock in profits or at least pull out your initial investment to secure the trade.
That way, your risks drop significantly, and things get a lot easier.
I hope my article was helpful, if so, please :
Follow me for more alpha content
Like & Repost to motivate me continue
