Many memecoins that are trending on Dexscreener are SCAMS!
Even experienced traders fall into scammers' traps and lose more than $100,000.
Methods scammers use and how to protect yourself from them🧵👇
Before we begin, click Follow and Repost this item
I have spent a lot of time researching and would appreciate your support so I can continue to share this valuable information with you for FREE.
Every memecoin trader has fallen for fraudulent tokens at least once, and I am no exception.
Unfortunately, there are dishonest developers or CTO leaders out there.
Even if you haven't started trading yet, but know a lot in theory, you're still likely to get caught in a rug pull at some point.
1. But what does this look like and how can you avoid it?
Everyone uses tools like @dexscreener and other platforms.
When you're looking for hidden gems, you usually start by looking at trading volume and the number of holders.
This is done to check how promising the coin is.
If there is no trading volume, there is no point in further analysis.
Exactly, the trading volume and the number of holders attract the attention of other buyers, who then purchase the coin.
But the truth is often far from reality, as many dishonest developers create artificially inflated volumes and fake holders.
2. Why do they do this?
To attract as many traders as possible and then drain the liquidity of the token.
This may not always happen, but practice often shows the opposite result.
The scariest thing is that it is almost impossible to detect, which is why even experienced traders fall into the trap.
3. Even with tools like @bubblemaps, you won't be able to detect a connection between wallets.
This is because there will be no visible links — this fake trading volume automation operates across thousands of wallets.
And they all look like genuine token holders.
This is how the memecoin market can be easily manipulated, and you wouldn't even know it
4. However, there are some simple rules that can help you identify a scam.
As I mentioned before, it is impossible to detect connections between wallets through Bubblemaps, BUT!
You may often notice that purchases are made for exactly the same amount.
Plus, scammers sometimes don't even bother to change their wallets — they use the same ones over and over again.
So if you see trading volumes being inflated but the price is not actually moving, it is a fraudulent token.
5. The second rule that can really help you:
Always check the token's TG group. That's where you can check if the trading volumes are really as large as they seem.
Of course, they can also add bots to inflate reactions and messages in the group.
However, bots often post similar, generic phrases such as: "LFG", "Optimistic", "Send to the moon", and so on.
6. Last but not least:
Check the Twitter account if there is one.
See what the team is posting and whether their tweets have likes, retweets, and comments.
They can also be faked, but it's usually obvious whether the comments are from bots or real people.
Disclaimer: Contains third party opinions. Not financial advice. May include sponsored content. See Terms and Conditions.
#Memecoins🤑🤑 #memecoins2024 $SOL