Welcome to Lesson Six.
Now that you know how to use CEXs and DEXs to buy tokens, it’s time to focus on staying safe in the memecoin space.
Not every token is legitimate — and in a market where anyone can launch a coin in minutes, rug pulls and scams are common.
In this lesson, we’ll cover how to vet a token, identify major red flags, and recognize green signals that point to a more trustworthy project.
A rug pull happens when a developer or insider suddenly drains liquidity or dumps their tokens, leaving everyone else with worthless bags.
It’s one of the biggest risks in on-chain trading — but also one of the easiest to avoid once you know what to look for.
If the developer wallet holds a large percentage of the supply, that’s a serious red flag.
They can dump on the community at any time for quick profit.
A healthy dev allocation should be small and transparent.
Check how much of the supply the top 10 wallets control.
This shows how concentrated the ownership is.