Author: MARMOT

Compiled by: Deep Tide TechFlow

On Dexscreener, most meme coins are scams!

Here are common tactics used by scammers and ways to protect yourself.

How to distinguish between scams and real opportunities?

With the rise of meme coins, related scams are also surging.

Many seemingly promising tokens are actually designed to drain your wallet.

Even experienced traders have suffered significant losses in these traps.

The meme coin market changes rapidly, and scammers know how to exploit the hype.

Let's explore how they operate and, most importantly, how to protect yourself.

False popularity attracts traders.

Scammers artificially inflate trading volume and create false holder data to make their tokens appear highly active. This attracts unsuspecting traders who mistakenly believe they've found the next big thing but end up in a scam.

What is the true purpose of these scams?

The main goal is to create hype. By making the token seem popular, scammers can persuade traders to invest. Once enough funds flow in, they will withdraw liquidity and vanish, leaving others with worthless tokens.

How do scammers fabricate their schemes?

Scammers often use bots or improper services to make their tokens look legitimate.

Even if the trading volume seems high, it may just be surface-level.

Monitor liquidity changes.

Another important sign of a scam is rapid changes in liquidity.

If developers suddenly withdraw funds or liquidity pools shrink rapidly, this is often a sign they are preparing to retreat.

Therefore, it's crucial to closely monitor the flow of funds in the project.

Continue with on-chain analysis.

Analyzing wallet distribution is key to identifying potential risks in crypto projects. Pay attention to token concentration—if a few wallets hold most of the tokens, it may indicate manipulation risk. You can use services like @bubblemaps to assist with this analysis.

Be cautious with newly launched tokens.

If a token suddenly skyrockets in ranking on Dexscreener without much background information, it may be a dangerous signal.

Scam tokens often appear quickly, catch traders off guard, and then disappear just as fast.

Regularly check their community.

Check their Telegram and Twitter groups for signs of genuine activity.

Scammers often flood these platforms with bots, posting generic hype like 'To the moon' or 'LFG!'. If interactions feel forced or overly artificial, that's a significant warning sign.

Dig deeper into social interactions.

Even on Twitter, fake accounts can flood the comments section.

Real interactions come from genuine conversations. If most replies are spam or bot-like content, proceed with caution.

You can also use services like @TweetScout_io to check the project's Twitter. On the token's Dexscreener page, copy its Twitter link and paste it into https://app.tweetscout.io to see if notable accounts follow them, along with other details.

Final advice: don’t rely solely on surface-level indicators.

Trading volume and number of holders can be easily manipulated.

Dig deep into the project, check the team, their code, and any signs of transparency.

If everything seems rushed or suspicious, it's best to stay away.

Stay vigilant, and remember: if something seems too good to be true, it probably is. Do your own research and don't let FOMO affect your judgment.