Is there anyway would explain rugpull for newbies?
Is there anyway would explain rugpull for newbies?
It is inevitable that someone ill-intentioned can create a token and lead many people to ruin with it (SquidGameFakeToken) But where should people look to avoid this when it comes to new tokens, that although some are for malicious purposes there are those who want to do things well.
Always look for a white paper, for instance there is a coin that hasn’t rugged pulled yet. “They” no-one knows who issued the token, there isn’t much information online about the token. Whenever you research it; you don’t like what people are saying. For instance, there is one called Ethereum Max. Kim Kardashian, Floyd Mayweather have both been paid to promote the thing. However we know nothing about it. That’s a classic one is to Use the name of something reputable and tag some word like max on the end of it.
Here are questions to ask to avoid a rug pull.
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So is there a white paper?
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What does the token do that sets it apart?
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What is the community saying about it?
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And google what does a search engine turn up and say about it?
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The tokenomics and what percentage’s are going where? Certain amount is going to be going to the creator, a certain amount to the team, advertising, etc.
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Is there a lock-up period for the people holding the coin. When does the locked period end? Say, it’s a significant amount of tokens. These guys could dump all the tokens onto the market at once.
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Centralized exchanges, are the Coinbases, OKCOIN’s, Binance’s of the world selling it.
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Who invented the token? Was it the Russian or the Mexican cartels?
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The gut feeling you get? That could be your best weapon against a rug pull.
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That was off the top of my head. Anyone else can add to this?