How to do your own research?
Warning: There is absolutely no financial advice on this or on any other pages of this website.
This is an article explaining how to do your own research.
Without reading the solidity code of a smart contract you will never have 100% assurance on how a coin works. Investing in early crypto projects is equal to taking huge risks with your money. That being said, if you still want to try, below are a few reasonable things to do before investing in a presale or buying a new cryptocurrency.
To begin with, security audits are very important to check but you also need to verify the audits legitimacy too. Most new coins have not been audited so you will need to do your own research.
Always check the contract address of the coin you are buying. Is this the same one that you saw on moonable? Before listing coins on moonable we do review them and try to eliminate scams (not a 100% safety guarantee). Sometimes scammers will submit a coin with a contract that does fit into our requirements, and they will announce another contract address on their telegram, a contract that would never get listed on our platform. This is why, you should always double check if the contract address we display is the same one you are buying. If not, this is a red flag and you should reconsider whether you wish to invest in this project or not.
Here are some other important points to check:
Telegram: Check if the number of members in the Telegram group is botted or not. You can clearly see this by comparing the number of online members to the total number of members. If a telegram group has 10,000 members but only a 100 online, chances are very high that it is botted. This is a red flag and you should reconsider whether you want to invest in this.
Bscscan / Etherscan Polygonscan: Check the "Holder" tab, try to see the percentage of coins held by the top holders, if a wallet has more than 10% you may want to consider this too risky to invest. This wallet could sell all of their coins, and it could have a huge impact (generally downwards) on the price. This can also cause panic and ultimately make everyone sell whatever they have. There are exceptions to this rule, for example:
- The locked pancakeswap liquidity
- 0x000...00dead address which is for burning coins, meaning that no one can ever sell the coins in this wallet
- In case of presale/prelaunch, the presale wallet can also have more than 10% (presales are obviously always more risky investments by default)
Poocoin: You can view token contracts on this website. Check if there is a red warning message under the LP box, this box says something along the lines of "liquidity is not locked, the dev can take everything if they wish". In that case, this coin may be a future rugpull, you may want to reconsider investing this is a redflag. On poocoin, you can also check for honeypots. Under the graph, you have all the sell and buy orders, check if different addresses are able to sell. Honeypots or prisoner tokens is a particular scam, where the developer has put a rule that only allows particular wallet adresses to sell, so if you only see buy orders and a few sell orders (generally huge dumps), you may want to run away.
Other than these more technical points, a management and developer team that communicates properly and that is transparent, and website that is always working with clean social media accounts that are professionally managed are all good points to check before considering if you should invest or not.