How to Identify Fake Cryptocurrency Tokens

With the advent of these online cryptocurrency, many Fraudsters has taken the advantage to Defraud newbies in the filed of cryptocurrency.

Mostly expecially in the, area of tokens

For those who are new to cryptocurrency worlds, their are l different between token and Coins.

Token is not a Coins, token is a subsidiaries of cryptocurrency build on already exist Cryptocurrency Coins BlockChain.

Example of token is Shiba Inu, Safemoon, Baby Doges and many more.

Token didn’t have it own blockchain, they are built on already exist Block.

Most of the popular Blockchain many token are build on is Binance Blockchain and Ethereum Blockchain.

Now how to identify Fake Cryptocurrency Tokens?

Sometimes is difficult to differentiate between fake and originals tokens.

But still yet, with diligent observation you can isolate fake cryptocurrency tokens.

One of the best ways to Check fake tokens, is by going through their website.

Any genuine crypto token must have websites, and roadmap.

So any crypto without websites and roadmap is fake.

Also some Fraudsters now as far as building shade website in other to decieve people.

Another way to check fake cryptocurrency tokens is check if they Rugs or not

For those token build on Binance Blockchain, many websites are now available to Check the originality of token build on Binance Blockchain.

Such most popular none is Poocoin.

To Check originality of token on poocoin, and you need is contract address of the token.

Then visit Poocoin.app

Copy and paste the contract address on the search bar, wait for the token to load, then click on it to get details about the tokens.

If you see owners is holding 100% of liquidity, know the token is scam, avoid it.

Read mores details below from poocoin

Basic checks

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 are 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 actually 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: 100,000.xxxxxxx

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 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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