Web 3.0 is a dangerous and rapidly developing niche. With thousands of new tokens created every week, it’s hard to keep up with those which are legitimate and don’t fall for scams and fraudulent schemas.
While there's no guarantee that any cryptocurrency or blockchain-related startup will be successful, our Safety Check should give you basic information and an overview of the most common scam patterns among crypto tokens.
Warning: Even if the coin passes our basic safety check, it still might be a scam. We always recommend doing your own research.
In collaboration with gopluslabs.io, we’re scanning contracts to find the following information:
Honeypot contract contains a malicious code that allows only the contract owners' wallets to withdraw from the coin liquidity pool.
Buy/Sell Tax info
Buy/Sell tax represents how much funds are automatically redistributed when making a transaction. Deflationary tokens tax is usually around 10%. Tax higher than 50% or modifiable taxes are suspicious. Check with the project team for more info.
The token owners can stop the trades anytime. This feature is often used during token ICO or as an emergency stop in case of a serious bug. Check with the project team for more info.
Creator owns >5% liquidity
The owner's wallet holding a substantial amount of tokens may have a large impact on the token price if sold.
A proxy contract relays all calls to another smart contract, which is called an implementation contract. Contract features can be updated by simply changing the implementation contract. Check with the project team for more info.
A popular scam pattern is when users are airdropped malicious tokens and then while attempting to manipulate the token, their wallet is drained. Be extremely careful!
There is a team of real and traceable people behind the project.
With this function, the contract owner is able to blacklist any address. The addresses on the blacklist are not able to continue trading this coin.