Many cryptocurrency traders have been captivated by meme coins. About 97% of meme coins on Dex Screener are scams. Why are people still interested in meme coins? That is because they are very alluring due to their capacity to quickly generate enormous profits and go viral. But this exhilaration comes with a significant risk: Scams.
If you are trading meme coins and you don’t use this tool, you might end up getting scammed. In cryptos there’s something known as rug pull. A rug pull is a scenario in the cryptocurrency world where developers abandon a project after raising assets, leaving participants with worthless tokens. Basically you buy a token and the developer is scamming you, thus they are pulling out liquidity from the token and you end up losing all your money.
To avoid getting scammed, you can use this tool known as RUGCHECK, go to rugcheck.xyz. This tool is free to use, you don’t pay any subscription fee whatsoever. You can use rugcheck for all Solana memecoins.
Here is how to use rugcheck.xyz
- Go to Dex Screener and search for the meme coin you wish to buy
- Scroll to the smart contract address side and copy the contract address of the meme coin
- Head to RUGCHECK and paste the contract address of the meme coin
- Click on check for details about the meme coin
This signifies a potentially significant meme coin, you can do more research about it before you invest your money.
On the other hand, if you get this risk warning prompt, run away. Don’t waste time, it is potentially a scam coin.
Check Liquidity Levels, Lock Periods, and Fake Holders
One of the most crucial things to keep in mind when looking at how to identify scam coins on Dex screener is to pay attention to liquidity levels. Why? They have a direct effect on how simple it is to buy or sell. Issues like price slippage or trouble leaving your position could be brought on by low liquidity.
Additionally, pay attention to lock periods; extended lock periods can be a sign of a project with long-term, serious goals. Keep an eye out for phony holders as well; if a coin displays a large number of holders but little activity, this may indicate artificially boosted interest.
Let us all be vigilant on the internet, particularly in this decentralized space.