🚨 Be careful if you see this in a Binance Alpha project!
Before you jump into investing in tokens in the Alpha phase, make sure to thoroughly review the Binance Audit section. Although “serious risks” may not always appear, cautionary warnings can be a red flag if you don't know how to interpret them. Here I explain two of the most common ones:
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⚠️ “A mintable asset has been detected”
This means that the contract allows for the creation of more tokens at any time.
📌 Example: Today there are 100 million tokens, but tomorrow they could mint another 900 million and devalue the ones you already have.
👉 Risk: Value dilution and extreme inflation if used unchecked.
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⚠️ “Upgradable contract”
Indicates that the smart contract can be modified after its deployment.
📌 Example: A token that currently charges no fees could be updated to charge 20% on each sale.
👉 Risk: You need full trust in the team, because they can change the rules.
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✅ Other checks that are indeed positive (and you should look for):
• No hidden fees when buying or selling.
• No black/white lists that could block your wallet.
• No lock-up periods that prevent selling.
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🧠 Final advice:
Investing in Alpha projects can be profitable if you get in early, but it is also riskier. Don't ignore these signals out of excitement. Research the team, the roadmap, and the community before putting your money in.
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🎯 Information is power. Share it with others so they don’t fall into dubious projects.
