Basic Thing To Learn To Spot Possible Rugpull Project: Owned Percentage Of The Supply.

7 59
Avatar for Cryptlook
2 years ago

If you want to know about these basic things to learn and to be more wiser in cryptocurrency and investing, you can start reading my first article of this series: Basic Thing To Learn 1.

The article mainly tackled about the token's Liquidity and guiding how you can avoid getting rugpulled and losing money from it. It was the first one, and this article right now will be the second and will be talking about the importance of owning a percentage of supply of the token. If you want to learn more, make sure to stay tuned for a new series because I will randomly published it every week.

Owned Percentage Of Supply.

On March 16, 2022, I talked about how important locking the Liquidity is to avoid a total rugpull in the project. But also mentioned, not in the main topic, that a rugpull can also occur even if it has Locked its Liquidity forever. A rugpull can still happen when there is a huge amount or quantity of tokens being sold minutes after minutes in the market. And this is possible when;

  • A wallet holding a huge percentage of the supply sold or were selling.

  • New tokens were being minted in the contract and being sold by the developers of the project.

If any of these two mentioned above are active, then people who are invested in the project are on high risk of losing their invested money. Those two mostly happen with degen token (right now with meme tokens and NFT game tokens) after a huge pumped when the hyped of the marketing is slowly fading. A wallet holding a huge amount of percentage of the supply will take advantage of this to convert their tokens into other cryptocurrencies or stablecoins.

How To Know The Supply Holders?

This is just simple. All you need is to have the contract address of the token and paste it on its chain explorer/scanner (example; Etherscan and bscscan). There you can find most of the information you need about the token like the total holders, price, transactions and of course the holders. You must know the first 10 wallets of the token and how much tokens they have and realize how much of a big impact on its chart can take when those wallets sold.

When To Know It's a Red Flag?

If the developers were anonymous, at least give it a very little try.

If they promised a huge marketing, take a little risks and be patient

But if the token has an unlocked Liquidity, infinite supply and many wallets were holding 5%, 10%, 20% or more? Then don't bother getting into the project.

Not unless if the wallet with huge percent of the supply is a contract wallet.

When a wallet has so much amount of the tokens, then the future, or even just the coming days of the project, will totally fail. Those wallets holding a lot of tokens will only have one job: To wait for people's money and sell on the top.

For every people who buys the token, they can sell.

For every pumped happen, they will surely sell.

When a FUD is present in the project, they can strongly sell.

After all, those wallets with huge token holdings can decide whether they drop the price of the token or just let it be for a while. More percentage means more power in the token's price. So if you want to be a better investor, don't just take the risks with knowing how you can possibly lose in this game.

Related articles:

Tips For Better Investing.

Why NFT Games Can't Sustain.

MyDefiPet Arena Is Coming.

How I Lose $500 In One Token.

Conclusion And Recommendation.

There are a lot of projects promising great products in the space almost everyday, however, most of that projects were simply a kind of scam who just want to take money from people. This is why a very deep research is needed because we are talking about our financial capacity and needs here and for -50% of value of your portfolio that lose, you need 100% increase for you to gain back those losses.

Be wise. Do research. Trade responsibly. Managed your risk.

6
$ 0.16
$ 0.05 from @Jane
$ 0.05 from @Ruffa
$ 0.05 from @ARTicLEE
+ 1
Sponsors of Cryptlook
empty
empty
empty
Avatar for Cryptlook
2 years ago

Comments

Yong tuxpaper for sbch token, ang ganda mag check jan if uong addy ba ay naghohodl ng malaking percentage ng token. Minsan lang nakakatamad din mag ala detective Conan ee tuloy ako'y invest lng ng invest

$ 0.00
2 years ago

Yang tuxpaper baka parang token sniffer yan. Wala, alat pa talaga kaalaman ko sa smbch haha

$ 0.00
2 years ago

I have never invested in any rugged pull projects before.

$ 0.00
2 years ago

Really? You must be lucky. I have experienced a lot of it. Rugpulls, honeypot etc. All from last year.

$ 0.00
2 years ago

A o Yung honeypot? Narinig ko na Yan before

$ 0.00
User's avatar Yen
2 years ago

Yung token na mataas value. Pwede ka magbuy pero hindi masell.

$ 0.00
2 years ago

Ah Yun pala Yun.

$ 0.00
User's avatar Yen
2 years ago