Projects designed to fail.
WHAT AN EXIT SCAM IS
A project raising funds and disappearing.
WHAT A LIQUIDITY REMOVAL IS
Developers withdrawing the funds backing a token, leaving it worthless.
WHAT PREVENTS IT
Liquidity locked by a contract, verifiably.
WHAT TO CHECK
Whether it is locked, for how long, and by what mechanism.
WHAT HONEYPOT CONTRACTS DO
Allow buying but prevent selling.
HOW TO DETECT THEM
Tools that simulate selling before you buy.
WHAT HIDDEN FUNCTIONS ENABLE
Issuing unlimited supply Blocking transfers Changing fees arbitrarily
WHAT TO EXAMINE
The contract, or an analysis of it.
WHAT WARNING SIGNS EXIST
Anonymous teams Copied documentation Promises of guaranteed returns Pressure to buy before a deadline Heavy promotion by paid accounts No working product
WHAT AUDITS CLAIMED BY A PROJECT REQUIRE
Verification at the auditor's own site.
WHY
Claimed audits are frequently fabricated.
WHAT TO CHECK ABOUT HOLDINGS
Whether a few addresses hold most of the supply.
WHAT THAT MEANS
They can sell into any demand that develops.
WHAT TO ASSUME
That most new tokens are not investments but exits being arranged.
