How to avoid investing on a project (Coin) that will rug pull/ rekt on the Binance smart chain network (PART 1)

I know how painful it is to invest with the hope of making something for oneself in the not-so-distant future and all of a sudden, the investment goes, and one loses his or her all her money in the process. It is one of the most painful occurrences one could experience and much of that has been going around of late.

Well, some of this could be avoided when investing in some coins and most especially the new projects. With lots of coins coming out on a daily basis it would be rare for all to turn out great but they are just some projects that scream scam and are likely to rug pull. those projects should be avoided.

Well, there is no 100% way to guarantee that a project will turn out great but they are measures that can be taken into place to avoid investing in a bad project that is likely to rug pull and these measures are:

• Checking their liquidity status
• Checking their development team
• Checking their road map and use case

The measures above could give one a glimpse of how to avoid investing in a project that will rug pull and the most important one is the first one which is about checking the liquidity of a project. Continue reading to know the details in full.

Checking the liquidity status of a coin

First, liquidity is the availability of liquid assets to a market or company. Liquidity allows for the exchange of coins to either a stable coin or other coins and this is the first thing that should be considered. What is the essence of holding a coin that can not be sold?. it is as useless as having money that is not acceptable.

That is why liquidity is important and it should be checked out first before investing in a new project. The investor has to know if the liquidity of a project is locked or not and also for how long. Well, finding out if a coin has its liquidity locked can be quite stressful but it is worth the stress. They are various ways of finding out if a coin has its liquidity locked but for this article, I will make use of just three sites (tool) which are:

• Poocoin.app
• Bscscan.com
• unixtimestamp.com

This example is based on a project built on the Binance smart chain network. hence the usage of Bscscan.com. So lets say the project we want to search for is named Baby cheems inu with the contract address "0x967da0d87a60e5fe7331156480c3f62ce4016b28". The first thing to go to the poocoin.app site and it will come up like this in the image below

Input the Contract address and search, the next page to be redirected to will look like this

On the left-hand side of the image, you will notice where the holder is, click on the holder and you will be redirected to the BSC of the project where the holders will show. The red arrow shows where to click.

Kindly note that if liquidity is been provided on the Pancakeswap, it will be shown on the left-hand side just before the BSC transaction but if liquidity was provided and locked using another third party, then the holders as shown earlier should be clicked.

Clicking the holders will redirect you to the Bscscan and to the holders' page just shown in the image below

A word like attachment file shows that there is a contract in place. So we click the address to find out the kind of contract this is. you should be directed to something like the below image

The contract of these tokens shows that liquidity for this token is locked and the liquidity locked was further increased 19 days ago. But the issue now is that we want to know for how long was the liquidity locked. to find out that, we need to click on the transaction hash of the increased locked tokens and navigate to the log section.

From the image above, the last transaction below where the data is shown, The Hex has to be changed to number and it is that number is to be used to see or know for how long liquidity was locked.

once change From HEX to number then it should loom like this and the number should be copied

The number copied was 467670671206539842516 and this number will be converted to time (days or months or years) using the Unix timestamp site. entering the site should look like this

once the number is inputted in the search column and the convert tab is pressed, the result should look like this

Right according to the image above, the liquidity is safely locked till 14,768 years.

So that is how to check if a project has its liquidity locked and it is one way to avoid investing in a wrong project or a project likely to rug

To be continued in part two...