HOW TO AVOID RUG PULL || 10% beneficiary to tron-fan-club

Hello friends, I will discuss we you the signs you should look up to in other to avoid rug pull. Many people has lost the life savings due to rug pull and i have put together the signs we should look out for.

LIQUIDITY

You must check the amount of liquidity a token has before investing in it because if token liquidity is low, it will easy to double or triple the price and it also means it will be very easy to lose money.

SAME LAYOUT

You might have some site that looks similar, it is because the developers are using the same code from the original code. This is a very easy way to spot a scam project because the amount of time a developer spent on creating the website will reveal whether the project is a scam. Why would they spend months building a platform when they can spend 10 minutes by just copying the codes.

SOCIAL PROOF

This is very a big influencer is promoting a particular project without even knowing any token about it and the influencer might even invest in the project. The influencers don't have time to check the code or read the white paper. They are just promoting the project for money. One thing we should is that a good project won't promote itself and they won't as influencers to promote their project.

WHITEPAPER

Whitepaper entails what the project is all about and the problem it is solved and the paper can take months to perfect. A good project will take a lot of time to build the whitepaper, it will have stat, diagrams, and the actual problems it is solved. You should that if a white has less than 20 pages, we can call it a white paper, it is just a sales page designed to rip you off your money.

CHECKING THE CODE

You can check the smart contract code on bscscan or other blockchain explore to see the potential scam and you can also use a website called rug doctor. You can use the rug doctor to check token and smart contract code and it will show you common rug pool strategies. After detecting a potential scam, they will use rugdoc.io to tell people about the scam project. Another website that does a great job like rug doctor is tokensniffer.com. What the website does is compare tokens similar to many other tokens and the token have high similarities to other tokens, which means that is a sign of a rug pool.

CHECK WALLET

You can check a token address on the blockchain explorer to see the top holders of the token. A good sign you note is if the top twenty wallets are holding more than 30% of the token or if a single with is holding more than 30%, it big sign of a rug pool because the person can sell his token at once making the price to crash.

TOTAL VALUE LOCKED

What this simply means is the total of coins in a dollar that the developers invested in a project. A good project usually has a lot of money invested in them and sometimes it could be billion dollars. A scam project doesn't usually lock a huge amount of money.

CONCLUSION

If spot a sign of a rug pull, be sure to withdraw your asset from the project before it is too late and also notify people about it. You can tell people on discord, telegram, Twitter, and other means. My advice to you is to only invest in projects that have been around for a long time and have a lot of money in them. Make sure you check some website sites that have a rug pull list and also check the wallet amount. I believe you have learned one or two things from this content about how to avoid rug pull.

THANK YOU FOR READING