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BullishWhat are Crypto Rug Pulls? How to Avoid Meme Coin Rug Pulls?
Just Imagine, You have invested in any meme coin but suddenly all of your investment become zero. This is the clear sign of Rug pull where 99% and sometimes 100% of your money vanish within couple of seconds.
In this post, I will explain you how can we identify the rug pulls before investing in any cryptocurrency.
Major Signs of Rug Pulls.
Invesment Disappeare within seconds
You are in front of your mobile screen and dreaming about big profit because you just invested in meme coin. But all of sudden your invesment gone and you are surprised, what happened? The answer is, You have become the victim of Rug Pull.
Lack of Liquidity.
You are watching the meme coin price is going high and You just pressed the sell Button but you are unable to sell it because there is no buyer in the market and your funds become devalue. This is called lack of liquidity or No Liquidity.
How to identify Rug Pull Traps
High Token Holding
Sometime creator/team hold large quantity of coins. They can sell it for profit. Once they sell large portion of the coins then panic selling starts and you funds start to loose its value.
Mintable Tokens
Creator of the token enable the option to mint unlimited tokens in future while creating the token. They mint more and more tokens over the time and value of your investment decrease.
Tax Manipulation in buy and sell.
You spent 100 dollars to buy token. Order executed but you got the tokens worth of 20 dollars or less. What does it means? Creator of the token can modify the tax percentage anytime and your funds evaporates
How to Avoid Rug Pull
Always check the liquidity, smart contract, maximum and supply of the tokens. You can check it through rugcheck or bireye tools.
You must check the number of wallets who are holding the coins. if few wallets are holding large chunk of the coins then this is a red alert
Check the presence on social media platfrom like twitter, instagram or youtube of meme coin. If there is not active community then avoid it
@Binance #Binance
Just Imagine, You have invested in any meme coin but suddenly all of your investment become zero. This is the clear sign of Rug pull where 99% and sometimes 100% of your money vanish within couple of seconds.
In this post, I will explain you how can we identify the rug pulls before investing in any cryptocurrency.
Major Signs of Rug Pulls.
Invesment Disappeare within seconds
You are in front of your mobile screen and dreaming about big profit because you just invested in meme coin. But all of sudden your invesment gone and you are surprised, what happened? The answer is, You have become the victim of Rug Pull.
Lack of Liquidity.
You are watching the meme coin price is going high and You just pressed the sell Button but you are unable to sell it because there is no buyer in the market and your funds become devalue. This is called lack of liquidity or No Liquidity.
How to identify Rug Pull Traps
High Token Holding
Sometime creator/team hold large quantity of coins. They can sell it for profit. Once they sell large portion of the coins then panic selling starts and you funds start to loose its value.
Mintable Tokens
Creator of the token enable the option to mint unlimited tokens in future while creating the token. They mint more and more tokens over the time and value of your investment decrease.
Tax Manipulation in buy and sell.
You spent 100 dollars to buy token. Order executed but you got the tokens worth of 20 dollars or less. What does it means? Creator of the token can modify the tax percentage anytime and your funds evaporates
How to Avoid Rug Pull
Always check the liquidity, smart contract, maximum and supply of the tokens. You can check it through rugcheck or bireye tools.
You must check the number of wallets who are holding the coins. if few wallets are holding large chunk of the coins then this is a red alert
Check the presence on social media platfrom like twitter, instagram or youtube of meme coin. If there is not active community then avoid it
@Binance #Binance
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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