To be able to recognize rugs and scams, one must conduct extensive research. It's not just the smart contract check that gives you peace of mind.
! Scammers have become increasingly sophisticated, and they have been able to evade reputable audits in order to steal investors. It's actually one of the first things most teams do to appear safe to investors.
Most projects start with an audit to convince investors of their intentions, then ramp up the promotions to reach as many investors as possible. They are able to steal the funds and flee as more and more investors join in. This is essentially what is going on around chains right now.
Most investors look for clues everywhere, try to talk to teams, and research the smart contract using scanners that only show the mechanics of the contract, not what the developers can do with it.
Consider the following scenario:
- Contract renouncement is extremely popular, and most investors believe it is the best way to demonstrate that a team will not steal funds.
- On the other hand, some groups fabricate a renouncement in order to fool investors.
In this case, the best course of action is to determine whether the project's contract needs to be renounced. Not all projects must, because the smart contract may require changes in the future, and the project may fail as a result.
Sphynx Checker will help you verify the following:
- Swap Analysis
- Contract Analysis
- Holders Analysis
- Liquidity Analysis