Safeguarding Yor Capital Amidst The Memecoins Craze.
The meteoric and astronomic rise in the price of $PEPE, a brand new meme token, might just signal the beginning of another memecoins season since the last one we experienced with $Dogecoin, $Shiba Inu and $Floki Inu, to mention but a few.
$PEPE, a token created on April 16 as an absolute joke with an initial measly market cap of less than $10,000 has now become the talk of the web3 space after it did a whopping 21,000% increase and its current market cap hovering above $100 million.
This scenario had left many experts and normies with mouth wide open and many are now in the wild goose chase for the next $PEPE.
But wait, what are memecoins and why are people so obsessed with them? Meme coins are cryptocurrencies that are based on internet memes or popular culture references. These coins often have little to no real-world utility and are created primarily for entertainment purposes. Examples of meme coins include Dogecoin, Shiba Inu, and Safemoon.
However, in the quest for the next, shiny new meme tokens, ultimate care has to be taken as bad actors and players often take advantage of peoples’ desperation by creating tons of tokens with malicious intent.
Some tokens can only be bought but cannot be sold ( otherwise known as honeypot) and in some other instance, the developer or creator of a token can decide to remove the liquidity of the project thereby making it practically impossible for those who had bought the token from making any profit whatsoever (otherwise known as rug pull).
So What Can You Do To Keep Safe? DYOR- Do Your Own Research!
While it is very important to note that investing in cryptocurrency is a risky venture, it is even extremely riskier buying into meme tokens and you just do your due diligence before investing ( or degen-ing) into any future meme coins.
The tools below can give you some insights and information about a token:
Tokensniffer.com : Token Sniffer is an easy tool which can be used to search for various tokens on both Ethereum and Binance Chain. Simply copy and paste the token contract address into the search bar, and TokenSniffer will provide info on exploits, a brief contract audit, and more.
Honeypot.is : let’s you know instantly if a token can only be sold by the developer only or not, simply by pasting the contract address of the token.
Dexscreener.com : This is a DeFi analytics platform that allows users to track activity on decentralized cryptocurrency exchanges across a large number of blockchain networks.
It also allows you to spot when a token is created as well as the amount of initial liquidity injected by the original owner of a token. It even gives more additional layer of information as to whether or not the liquidity is locked and contract renounced.
Been armed with this arsenal of information and foresight will not only help you preserve your money but will also ensure that thread with utmost care on the DeFi landscape.
Have you had any recent experience -good or bad, with any meme token? Comment below 👇
