Let’s take a look at SonicINU as an example of this:
SonicINU launched on Pinksale 21 April just over 1 month ago and accumulated 90+ $BNB in funds
The starting market cap would was 44,000 if you would have invested $100 at that time, during sonics all time high which was around 6.2 Million you would have had around $14,000. The current MC is around 3 million which means you would current have around $6800. These figures are not inclusive of the 5% reflections you would get per buy and sell tax.
How did we arrive at these figures let me teach you how to work it out:
Lets get mathematical.
First, we need to figure out how much the market cap increased from the presale to the all time high. To do this, we divide the all time high market cap by the starting market cap:
6,200,000 (all time high market cap) / 44,000 (starting market cap) = 140.91
This number, 140.91, represents the multiplier for the market cap's increase. Assuming the value of your initial investment grew at the same rate, we can apply this multiplier to your initial $100 as follows:
$100 (initial investment) x 140.91 (market cap increase multiplier) = $14,091
Simple right 😉
Risk vs Profit
While #MEMECOINS or any other investment be profitable they do not come without RISK. Risk management is the most important part of any investors day to day activities it should be at the forefront of your mind with every click of a button from scams to rug pulls and even over investing.
Let me explain in more detail:
Now when you look at SonicINU they have achieved multiple milestones so far such as:
Active community on social media platforms like Twitter nearly 7k users, Telegram nearly 9k users
Marketing partnerships such as AVAdex and Binance LIVE amas
And burning 63% of total supply burnt
Developing and launching a meme-based NFT Marketplace.
Weekly prizes for nft holders
And a 2nd Audit by Certik.
They even have things planned for further down the line such as:
CEX Platforms listings.
Develop a P2E Game based on Sonic INU Token.
Launch Sonic Inu DAPP.
Launch Sonic Inu Wallet.
⚠️Now you may look at this and think "wow this is awesome, it is more than a meme coin I am safe to invest, even MEMECoins such as DOGE have no utility other than being a digital asset right"... WRONG!
While SonicINU does have utility It also comes with its risks as does every other investment, remember I told you about risks before you may have got excited about the milestones and future plans? let’s take a look 👁️:
🛡️According to recent research from crypto risk monitoring firm Solidus Labs, nearly 12% of all BEP-20 tokens, the standard token on BNB Smart Chain (BNB chain), are tied to scams. This firm detects 15 deployed scams every hour across twelve major blockchains, indicating a significant level of risk in the wider blockchain space2
In terms of specific characteristics that could signal a potential scam, a study from ISACA found that 95.2% of "rugged" projects or tokens had teams that were fully anonymous, and 13% of rug pulls took place within a day, with another 54% taking place within about a month and a half
It's important to note that while these statistics provide a snapshot of the risk associated with investing in BNB Smart Chain projects, they don't guarantee that a specific project will fail or be a scam. Due diligence and careful research are crucial when investing in any crypto project.
While I stress the importance of the above, this is not to say that SonicINU will ever act maliciously or steal users funds, we may see this project go on to launch on Binance and even be a well recognised player in the #crypto world. Who knows what is possible, after all we did just see #pepe and #FLOKI get listed.
Top Tips
So with that in mind just think that $100 you invested could have easily gone to a team or a project that is trying to rugpull or scam money from you, here are some top tips on how to stay safe and invest wisely:
🔹Not every team is legit - (even if they are fully (KYC) know your customer / Doxxed
🔹Not Every token or nft will pump - I have seen more go down than I have seen go up
🔹Manage risk - I have included an article below to help with this please read on
🔹DYOR - Do your own research, make sure you are happy to invest and it suits your needs, do not listen to an influencer or base your decision from someone else's post
🔹Never invest more than you can afford to lose - Split your portfolios and manage risk accordingly you could even apply the 1% rule to this (see #Binanceacademy link below)
🔹Take your initial investment (minimum you should be doing) + profits - if you are in profit make sure you take your initial investment and profits if possible this will safeguard you even further ensuring if a project does rug you have retrieved your initial funds back, putting you back in the same financial position you were before you invested.
🔹Even with all these steps keep in mind what I shared above about the % of scams and rugpulls you can easily lose everything with a click of a button and no project is 100% safe we have seen such things with the likes of FTX as only 1 example of the many out there.
Smart contracts and Phishing!
Double-check URLs before entering sensitive info. Watch out for look-alike domains, rogue browser extensions, and fake apps. Stay vigilant! #PhishingScams
Use risk scanning tools to analyze smart contracts.
The DappBay Risk Scanner: dappbay.bnbchain.org/risk-scanner
AvengerDao Meter API: avengerdao.org/riskScanner
BSCScan too difficult to read at times?
Bubblemaps can help with that : https://app.bubblemaps.io/bsc/
Verify Official Binance staff and websites: https://www.binance.com/en/official-verification
Please carry out thorough research in every project you decide to invest in,
You can find more help on risk management over at #BINANCE academy
https://academy.binance.com/en/articles/a-beginners-guide-to-understanding-risk-management
