The amount of different altcoins increases daily and there are more and more frauds happening. So how to identify the next 1000x rocket and avoid scams like SquidGame?
1. Amount of holders
Check the holder amount, always! This is something that can be also inflated, but coins with a market cap of millions with only a couple thousand holders are rare and should always raise a red flag! This is easily done by looking into the contract either in EtherScan or BscScan!
2. Look at Liquidity Pool
It’s important to check the liquidity pool compared to the market cap! If the market cap is high but there’s basically no liquidity it should always raise a red flag! A good ratio for this is that the liquidity pool is at least around 10% of the market cap!
3. Check if The token is Doxxed / Audited!
Tokens are nowadays often audited by third parties. There are already some fraudulent audits going on, you cannot solely trust this but good to keep in mind while searching for the next x1000 rocket.
4. Don’t invest without checking yourself!
If it’s too good to be true, it most probably is not. Do your own research and at least check the things mentioned in this article, never go with recommendations purely – If you’re not a gambler. In altcoinreviews.org you can find reviews of tokens where for example the things mentioned in this article are summarized by coin.
5. Check the community!
It takes only a couple of minutes to join the tokens telegram channel. Don’t neglect this step, there are lots of huge Telegram groups full of bots, but bots rarely write. Follow the groups for a day or so to see how active the community is and there are lots of fraudulent comments!