Crypto is a dangerous place. In particular, for the run-of-the-mill investor. If you aren’t experienced in this space, you could lose your money in more ways than one.
One of the most painful ways to lose your money is through detecting vulnerabilities early. In 2023 alone, $624 million worth of crypto was lost to rug pulls and scams. So, do not think that you’re immune to such threats.
Fortunately, we have tools online that can help you discover a token’s vulnerabilities early. Today, we’ll be going through one such simple tool using the tweet above. So, stay tuned to learn how to protect yourself and your precious funds. But first, let’s define the tool we’ll use.
What is De.Fi?
To begin, let us start with De.Fi. De.Fi is a Web3 SuperApp. It comprises a suite of tools for the retail crypto investor. This includes the world’s first crypto anti-virus, a portfolio tracker, an audit database, and more! Indeed, there’s a lot to talk about with De.Fi. But today, we’re just focusing on one of its products: The Smart Contract Scanner.
1) Smart Contract Scanner
Now, what can this magical scanner do to help us spot rug pulls early? For starters, the scanner can provide an analysis of any smart contract in the blink of an eye. The scanner can support 13 EVM blockchains, including Ethereum, BNB chain, Optimism, and more.
Indeed, De.Fi has created a powerful tool for us. This scanner is able to provide the following info to us degens before we ape into any new tokens:
- Vulnerability sources. The scanner informs us about exploits or vulnerabilities within the project’s smart contracts.
- Detailed findings. The scanner presents any vulnerabilities, exploits or issues in an easy-to-read format.
- A simple security score. This allows us to quickly gauge the safety of a project with a rating out of 100.
- Fast scanning. Results from any contract are provided in seconds.
- Extra token details. On top of the above, the scanner provides you with information on top holders and liquidity analysis.
3/ DeDotFi is a powerful tool:
• that provides: contract safety, high-risk features, liquidity, token distribution, and reports.
Let's figure out why the token "PEPE" that I found on @dexscreener is falling by -99% in the last 24 hours.
Poor investors who aped in this token pic.twitter.com/B2mZMNN4uo
— dealer.eth (@dealerdefi) September 23, 2023
And you know what else is great? It’s completely free! So, do take a couple of seconds before clicking the “Swap” button on Uniswap. Head on over to De.Fi’s scanner and do a scan first. If there aren’t any major issues, you can then proceed to buy the token.
This tool helps you to detect developers with malicious intent. It’s not a 100% checker. There are some other risks aside from rug pulls. For instance, the developer could still give up working on the project entirely. Or, you could still lose money when early buyers dump on you.
How Do I Use the Smart Contract Scanner?
To use the smart contract scanner, follow the steps below:
- Head on over to De.Fi’s scanner here.
- Copy the token contract of the project you’re about to ape into. You can find this on DexScreener, CoinGecko, or any chain explorer.
- Paste it into the input field in the scanner.
Once that’s done, you should see a report start to generate. In seconds, you should see an analysis similar to the screenshot below. Using the below project as an example, you can see immediately that they’ve got issues. Firstly, there’s missing liquidity in the project. Secondly, there’s a huge transfer fee too. You can now tell that you’ll be having issues buying or selling this token before aping into it. Here is an example:
To summarize, the De.Fi team have outdone themselves with this scanner. For sure, it’ll be a great addition to any degen’s security arsenal. To prevent unnecessary loss of funds through rug pulls, always run the project’s token contract through this scanner first.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.