Launch of a new token with a big Liquidity
It's becoming easier and easier for New Token scammers to scam and rug pull.
I've written earlier a bit about how they scam/rug.
So, a while ago I decided to check again the new coins scams. (This experience is some months ago, but I’ writing about it now because since the market is doing good, a lot of scammers are back in the game)
I went to Coin Alpha (they have a warning message too "Note: Trading new tokens is risky. Consult multiple sources of information and review the contract source code on Bsc Scan.") and went into newborn tokens.
Normally I do a bit of research, (By the time you do a bit of research, some of the tokens have already been rugged).
A bit about my research.
Some of the things I check is the contract to see for any abnormalities (I check them mostly on safu, Tokensniffer. If there are other sites you know of please mention in the comments)
Next to check is that is the token saleable.
See if they have a website/check their website.
Check their whitepaper (Honestly, according to be having a whitepaper doesn’t really mean the token is good. It just proves that they have put in some effort.
See if they are doxed etc etc etc.
But that day, I came across a new way of Rugging.
There was this new token launched called "Lobby" Where the scammer earned about 70000/- dollar in a matter of a few minutes. It had no website, no TG or discord, no information at all about the token and still people were rushing to buy it. I saw the token just 2 minutes after launch and people were buying like crazy.
So what attracted the buyers?
The scammer must be a regular scammer who must have earned a lot of money and is now using that money to make more money.
The Token launched with a "LIQUIDITY" of 68000/- dollars.
For a new token with no Pvt sale or presale and to launch with $ 68000/- liquidity gave faith in the team to the investors.
It was enough to get the trust of the buyers. People were literally rushing to buy. Some of the buys were even between 1000 and 4000 dollars. Maybe the scammer himself was also buying with big money to make others believe that people are rushing into it and the green candle was becoming bigger and bigger really fast. Basically, creating a false FOMO. (I don’t know why I wrote False Fomo…LOL)
To test the waters I aped in with only 5 dollars (I call it scam research fees paid)
Within minutes the MC was about 148000 dollars.
and then came the huge sell from the scammer and liquidity removed. POOF everything gone...not a trace of anything. The team were ghosts now.
I really wanted to connect with some of the buyers to know how they felt and if they've now learned their lesson or have started calling Crypto itself a scam. But, Like I said earlier, No TG, No Discord, No website, No Dox....nothing.
So guys, learning lesson... DO not fall for a new token just only on the basis of a large amount of liquidity.
Be careful. Take time to do research if you are buying a new token.
Do Not FOMO.
It’s ok to make less profits than lose money.
The scammer must have launched his next scam token with a larger liquidity while sipping champagne in the Bahamas while enjoying his life as a sugar daddy. You never know.
Now how do I get my 5 dollars back??? LOL
The reason I write about scams is because I want people to be careful and not fall for scams.
Also, please do your own research
Not Financial Advice
Stay Safe Stay Happy.
