Table of Contents
here are some Basic checks to know if a new token will rug or not.
*If the token has just launched, do these basic checks.*
Check the % of supply the top holders have. If the top holder has a very high percentage and it’s a wallet, it could be a rug.
Did they burn 50% of the supply instantly after the initial supply was minted? If so, all of the other wallets’ % holdings are double what they say in bscscan. Burning a large amount of the initial supply before launch is usually a trick to mislead people into thinking a 20% holder is a 10% holder. Some projects even shill the burn as if it was some sort of sacrifice on their part. Check the project website to see if they are transparent about why they did this initial burn.
Check that they have locked the LP. For example, this the BNB LP of the selected token (some tokens may use BUSD or something else as their main LP). If the top holder has almost 100% of the supply and is a wallet address, the LP has not been locked/burned.
If the top holder of LP has the burn address (any address starting with 0x0000…), the LP is burned.
If the top holder of LP is a contract address (one that has this icon ), the LP has likely been locked. Ensure that the lock timer is longer than at least 2 months for it to be safe. You need the project owners to publish the URL of the LP lock timer to know how long it is locked for (usually dxsale or unicrypt).
If the token has pools/farms, the top holder will usually be the pool/farm contract.
Top receivers
Token total supply: 10,000,000,000,000,000.0000
Often, the dev will distribute their initial supply across multiple wallets to hide the amount that they own. This table shows the top 10 receivers of the token (even if they have sent it to other wallets).
Check if the supply was transferred to them by the dev wallet, or purchased instantly after creating the LP and the sum of money spent purchasing. If a large amount was spent in the first few minutes of creating the LP, it is probably one of the dev wallets. However, if it was only a small amount of money spent, it is probably just a snipe bot
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