As the search and interest of traders in meme coins increases, the number of scam coins increases.
Most of the meme coins gaining popularity on#DexScreenerare scams!
Even professional traders fall for scammers and lose more than $100,000.
Many of the meme coins gaining popularity on Dexscreener are scams!
Even professional traders fall for scammers and lose more than $100,000.
Here are the methods scammers use and how to protect yourself from them🧵👇
Every meme coin trader has fallen victim to scam tokens at least once, and I am no exception.
Unfortunately, there are dishonest developers or technical officials in this field.
Even if you haven't started trading yet, but you have theoretical knowledge, there is a high probability that you will fall for a "Rug Pull" scam at some point.
1. What might this look like, and how can you avoid it?
Everyone is using tools like @dexscreener and other platforms.
When looking for promising hidden coins, you usually start by examining the trading volume and number of owners.
This step is done to find out how likely the coin is to succeed.
If there is no trading volume, there is no point in continuing the analysis.
Simply put, the trading volume and number of owners attracts the attention of other buyers, who in turn buy the currency.
But the truth is often different, as many dishonest developers create fake trading volumes and fake owners.
2. Why do they do it?
To attract as many traders as possible and then withdraw liquidity from the currency.
This may not always happen, but experiments often show that the results are contrary to expectations.
The scariest part is that it is very difficult to spot these tricks, which is why even experienced traders fall into the trap.
I don't want to promote what I show in the video, but you will see that everything can be bought and sold.
In the video, you can see that you can buy a certain number of owners and a certain trading volume directly from a website - crazy, right?
This may have been intended for real developers to promote their code, but scammers are taking advantage of this too.
The price is relatively cheap.
3. Even using tools like @bubblemaps, you won't be able to uncover connections between wallets.
This is because the links will not be visible - the spoofing process works across thousands of different wallets.
They all look real and have the actual symbol.
This is how easily the meme currency market can be manipulated, and you won't even know it.
4. But there are some simple rules that can help you detect fraud.
As I mentioned earlier, it is impossible to uncover links between wallets using Bubblemaps, but!
You can often notice that purchases are made in exactly the same quantity.
Moreover, sometimes scammers don't even bother to change wallets - they use the same ones over and over again.
So, if you notice a spike in trading volume without the price moving significantly, it's probably a scam.
5. The second rule that may be very useful:
Always check the currency's Telegram group. There you can check if the trading volumes are as real as they seem.
Of course, they can also add bots to increase engagement and messages in the group.
But bots usually spew out repetitive and clichéd phrases like: “LFG”, “Bullish”, “To the moon”, etc.
6. Last but not least:
Check the team's Twitter account, if they have one.
Follow what the team is posting and see if the tweets are getting likes, retweets, and comments.
These can be faked too, but it's often easy to tell bot comments from real people.
