In the world of cryptocurrencies, especially during the "meme season" when quick profits attract many investors, recognizing a genuine project from a fraudulent one is a key task. Many new tokens are hitting the market, but only a few have fair distribution, which is a guarantee of success. Unfortunately, some projects disguise themselves as legitimate but are actually controlled by a group of insiders who can manipulate the price. This is where the Bubblemaps tool comes into play. 🔮@Bubblemaps.io
What are Bubblemaps?
Bubblemaps is a visual tool for analyzing the distribution of token supply on the blockchain. Instead of sifting through endless lists of addresses and transactions, Bubblemaps presents this data in an understandable and visual bubble map. Each bubble symbolizes a specific group of wallets or an individual address, and their size indicates the amount of tokens they hold. The larger the bubble, the more tokens are concentrated at that address or in that cluster of addresses.
Key features of Bubblemaps:
Visualization: The main advantage is the visual representation of data, making it accessible for understanding even for beginners.
Clustering: Bubblemaps can identify clusters of wallets that are interconnected. This means it can detect when one person or a small group controls multiple wallets to create the illusion of broad distribution.
Insider detection: Clustering can quickly reveal whether a large part of the token supply is concentrated in the hands of a small group of "insiders" or the project team, which may indicate potential risk.
Why is fair distribution important?
Fair distribution of the token is critically important for the long-term health of the project for several reasons:
Protection against manipulation: When a small number of insiders hold a significant portion of the supply, they can easily manipulate the token's price by selling it in large volumes, which could lead to a market crash. This phenomenon is known as rug pull, when developers sell all their tokens, and the price drops to zero.
Decentralization: Fair distribution promotes true decentralization. The more people own the token, the less likely it is that one group can unilaterally make decisions about the project's future.
Investor trust: Projects with fair distribution garner more trust from the community. This indicates that the project team believes in their product and does not plan to abandon it quickly.
How to use Bubblemaps during the "meme season"?
During the "meme season", when investor emotions outweigh cold calculation, Bubblemaps becomes an invaluable tool for conducting basic analysis:
Project search: Enter the name or address of the token in Bubblemaps.
Distribution assessment: Look at the bubble map. The ideal situation is many small bubbles showing that the token is distributed among many individual owners.
Identification of clusters: Pay attention to large bubbles, especially those connected to each other. This may be a sign that one person controls many wallets. Bubblemaps can highlight these connections.
Risk analysis: If you see that 50% or more of the token supply is concentrated in the hands of 5-10 related wallets, this is a red flag. It indicates a high risk of price manipulation and potential rug pull.
Conclusion
Bubblemaps is not a one-size-fits-all solution for making investment decisions, but it is a powerful tool that provides transparency in token distribution. It helps investors quickly assess whether to invest in a project, especially when the market is chaotic. Using tools like Bubblemaps helps distinguish genuine projects with reliable distribution from those that may turn out to be just another scam.
How do you usually check new tokens before investing?
