Investing in #عملات_الميم can be exciting and potentially hugely profitable, but the higher the profits, the higher the risks. One of the biggest fears of investors is that they will be pulled out of the water, either by pulling the pool, or by running the team’s entire coin bank until the project’s liquidity portfolio is zero, or by some other fraudulent means, leaving you unable to sell your crypto, as your investment disappears in the blink of an eye. In this guide, we’ll explore how to spot potential rug pulls of all kinds and how to avoid falling victim to them.
Ways to Know When Meme Coins Could Pull the Rug
Sudden Disappearance of Funds: When you buy a certain meme coin, you monitor your investment closely, you go in and watch the chart every hour, often you will find the chart very volatile, and then suddenly, everything disappears. This is the hallmark of a sudden liquidity withdrawal, where 99% or even 100% of your funds disappear within seconds.
Lack of liquidity: Sometimes, the price of a meme coin may appear high, but there is no liquidity. This means that when you try to sell, there are no buyers, and your money evaporates.
Very low trading volume: One of the things that must be monitored in meme coins is the amount of trading volume. The larger the trading volume, the more reliable the meme coin is. However, if there is a very low trading volume, you will not find anyone to sell your coins to, or you will sell at a very low price and fluctuate very much as well. Examine the following image carefully. It is for the Shiryo coin. It appears that the daily trading volume is only about $24,000. If someone sells $24,000, the liquidity will completely disappear from the centralized platforms, and thus no one else will be able to sell. You will find many projects with a daily trading volume of no more than $1,000. We advise you to stay away from them.
Common Liquidity Withdrawal Methods in Meme Coins
Mintable Coins: Some creators leave the option open to mint more meme coins, which dilutes the value of existing tokens and causes your investment to lose value over time. Here, you will find the team minting more coins and selling them, thus increasing the supply and decreasing the value of the coin until it reaches zero.
Completely banning sales: This is one of the most dangerous rug-pulling and theft operations, as the work team bans sales on the platforms, and thus when you want to sell your coins, you will not be able to sell at all, despite the presence of liquidity.
Manipulating the sale and purchase tax: Creators can adjust the sale and purchase tax rate especially on decentralized platforms after a few minutes, turning it from a manageable fee to 99%, effectively draining your funds.
Team holding a large number of coins: If a meme coin team holds a large portion of coins, they can put them on the market, selling them on you causing panic selling and a rapid drop in value.
How to protect yourself
First, use tools: Websites like RugCheck or Birdeye allow you to paste in a meme coin’s contract address and analyze its risk factors. Look for signs like the mint’s continued empowerment, low liquidity, or a high number of individuals holding the token.
Second, check the top holders: Look at the top holders of the coin through wallet tracking technology. If a small number of addresses hold a large percentage of the supply, this is a red flag for a potential withdrawal of the token.
Third, verify the transfer of ownership: Make sure that the ownership of the token has been transferred, which means that the creators no longer have control over the contract.
Fourth, monitor the daily trading volume of the currency. If it is weak, do not enter, as it is often a negative indicator, and may indicate a lack of confidence in the meme currency you want to buy.
Fifth: Look for social presence: Check if the meme coin has an active community on social media platforms. Check if the interaction is real and not artificially exaggerated, and if security responds to all questions and community inquiries.
Seventh, be careful: Even with careful research, liquidity withdrawals or complete liquidation by the team can still happen. Limit your losses by setting stop-loss limits and being prepared to exit your investment if things start to look suspicious. Use a Telegram Bot like Trojan on Solana to quickly buy and sell your coins, reducing the chances of being scammed. And only enter meme coins with money you can afford to lose entirely.
Article summary:
It is known that #العملات_المشفرة is a high-risk, high-volatility coin, especially the meme coins that we see coming to the platforms every day by the dozens. Remember that the world of meme coins can be unpredictable, but by staying vigilant and following these tips, you can reduce the risk of falling victim to rug pull operations.