How to spot a Rug Pull Scam || 10% payout to tron-fan-club

Hello Tron lover♥️.welcome to my blog. I believe you're all good and keeping well. Today I will love to continue from where I stopped in my previous lesson about rug pull. You can call this the part two.So in this write up,I will be talking about how we can spot and avoid this scam. Let sit back,relax and enjoy the ride..smiles.

Anonymous Team.

The team behind a project is very important. You should probe into the team behind a project because it has a long way in determining if the project is here to stay or planning to rob investors of their money. When the team behind a project is anonymous without any form of identity nor track record of success in other projects then you can be sure that the project is out to scam people. Be sure to verify the identities behind any project you find fascinating enough to put your resources.

Ambiguous Whitepaper

Every viable project comes with a whitepaper which clearly outlines what the project is all about and even include in it a road map or direction. If you find out that the project is not really clear with their intentions and purpose or you by any means discover that the whitepaper is ambiguous in it presentation then it's a red flag already. We all need to be careful of project with no clear cut purpose I.e meme tokens and coin fall largely in this category so be wise in putting your money.

Limit sell order

One of he ways to discover these scam project is to check the value of what can be sold out. Many of this platform put restrictions on the platform on the amount that goes out,some are even very blunt in their malicious plan by ensuring that whatever comes in doesn't go out so you lose. You can carry out your litmus test by sending in a very little amount to test how much can't be withdrawn by attempting to. You might be surprise that the amount is gone. What if you had blindly sent in the whole fund you planned investing,your guess is as good as mine,all will be gone forever.

Unequal or imbalance Token Allocation

Another way you can discover a rug pull or scam generally is to check how the token is distributed. If substantial amount or volume of the coin is allocated to developers then it a red flag that you should be mindful.Those people can take off suddenly leaving investors with barely nothing after pumping it in their favour. If you don't know how to check the token distribution,do not worry, just visit Etherscan to see those holding the token and how it is allocated.

Absence of Lock-Up Period

If a project you're hoping to invest in doesn't have a lock-up or vesting period then you should reconsider because this is a red flag on it own. It shows the developers have malicious plans to carry out a soft pull. The absence of lock up period give developers access to run away with the fund at any given opportunity.

No vesting Period

This is another red flag you should look out for just like the absence of a lock up period. There's should be a period of vesting where you don't have access to investment in other to sustain the project and allow the token gain value over time. Lack of vesting period exposes the project to unethical withdrawal of fund which renders the token valueless, this is mostly done by those who is not in for a long term.

Low liquidity

A project with low liquidity should also be carefully considered before putting in your fund. If the trading volume in 24 hours is really low, developers can take advantage of this to manipulate the token price to their favour. Also do well to take note of the total value locked. The higher it is,the more confidence it builds in the heart of investors and vice versa.

Conclusion

Here you go again with another comprehensive presentation on how to spot rug pull scam and how to equally avoided it. You are to also make your research for additional information that will eqiup you because these people come up with all manner of of schemes daily to dupe people. Thanks for reading through.

Best Regards:
@lhorgic♥️