Untracked Token refers to tokens or coins that are created without being acknowledged by the existing smart contract or are produced outside of their intended allocation.
These Untracked Tokens are often early indicators of irregularities within a project, especially since they are usually issued without any prior announcement from the project team.
Untracked Tokens are typically created through the following methods:
From a minting function embedded in the smart contract, knowingly used by the project team. However, if any controversy arises, the team often claims their system was hacked.
Through a hidden function that allows the team to purchase tokens at a significantly lower price than the market rate, only to later sell them at market value.
They highlight vulnerabilities or loopholes within the system, software, network, or processes that can be exploited by unauthorized parties.
Eventually, these untracked tokens are dumped on the market, potentially causing a sudden correction of more than 95% in a short period.
Examples of past incidents include tokens like Iron Titan, Luna, and most recently OM. Currently, the untracked token issue with OM seems to have been resolved or is no longer detectable.
Due to this, it is important to stay cautious when investing. However, such events can also present opportunities — for instance, if a token reaches a new ATH (All-Time High), one could consider placing a short position.
Below are tokens that currently still have untracked tokens and the approximate portion of their total supply:
AVAX = 20.76%
HBAR = 7.62%
UNI = 45.01%
APT = 13.13%
FIL = 13.24%
FET = 57.54%
TIA = 10.89%
ATOM = 7.33%
ARB = 33.54%
OP = 43.02%
ICP = 58.62%
GRT = 8.14%
PENDLE = 8.2%
JTO = 49.28%
LDO = 10%
FLOW = 20.88%
RUNE = 34.21%
CFX = 1.14%
We hope this information is useful for everyone. Stay alert and cautious.
How do you think?
