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The cryptocurrency space is evolving day by day in both aspects of technology and number. Talking of which often happens in a crowd of numerous projects, it’s sometimes not easy to check for the authenticity of a project. The growing number of projects and tokens show the potential of technology, but the possibility of a scam, fraud projects or rug pulls also come along.
It created an effect where scammers evolve with growing tech, making more elaborate and complex schemes. As a result, identifying scam Defi tokens became difficult. But this allowed developers to tap and remove the pain point.
One such tool is Token Sniffer, which looks out different tokens across Ethereum blockchain and Binance Smart Chain. It has a user-friendly interface, and its usability is also simple.
What is Token Sniffer, and how does it help
Token sniffer gets you almost every information you need to get through the project or token. The report based on several aspects will be enough for you to quickly find out if the cryptocurrency token is reliable or not.
As you land on the official Token Sniffer website, you get options to find out the needed data either directly in front or via a search for it by putting the name or address of the token.
Whenever a new project or token launches, it becomes crucial to check its authenticity. With the interface of projects, tokenomics, usability, and their plan seem so perfectly fit that it’s not easy to get actual intentions most of the time.
In that case, it’s important to dive into the token’s technical aspects, its analysis from holder and contract point of view etc. To check out this information is not a piece of cake for many retail investors or people with less technical knowledge of crypto. At that point, in-depth analysis of Token Sniffer crypto comes in handy.
Process of using Token Sniffer
As told earlier about the easy to use interface of Token Sniffer, you have to visit its official website. After that, you will see an authentication page asking you to clear the ‘I am not a robot’ stage.
Clarifying the stage, you will land on the website welcome page, where you will see it talking directly about business. It showcases three sections that mention trending tokens, the newest tokens and the latest reported scams.
Your search should be finished till there if it’s still not, there is a search bar on top right corner where you can search any token you want to know about. Simply by putting the name or address of the token you are searching for, which you can put directly or by pasting the copied address.
Then your search result will get you an analysis of the searched token. The result shows different factors to judge the token, or still, if you don’t get it, you can consider an automatic audit number. The system of automatic audit on Token Sniffer tells the risk factor included in the respective token.
The numbers given to the token are from 100, that is _/100. The higher the score, the higher the risk, implying that the token and low score possess low-risk implications. A high-risk token has a higher potential of being a scam token and the opposite with a low risk or low score token.
You are good to go when you are done with the automatic audit score. Otherwise, if you need more information and insight that gives you a detailed analysis of the token, you can stay and read out further.
Further analysis is done based on Swap analysis, contract analysis, holder analysis, and liquidity analysis.
As clarified by the name, swap analysis or trade analysis informs if the token is sellable or not. If it’s eligible to sell or purchase, you can also introduce the applicable charging rate.
The next one is Contract analysis, which will let you know whether the source of agreement is confirmed or not. This shows that the token contract is authentic, and there is no prior contract.
There is always a point of scepticism to check for the decentralized nature of a token which can be judged from the number of tokens held by the developer. Holder analysis in Token Sniffer checks on that too and informs you about it.
Lastly, there is Liquidity analysis where it lets you know about the liquidity situation of the token. From every aspect where it can be checked, the symbolic liquidity gets analyzed and presented to you.
How Token Sniffer should be taken as
When you are told to invest you are also being told to ‘do your own research’ before moving forward for investing. Token Sniffer can be considered as a level out of your multilevel research about a project or token.
The site of Token Sniffer assesses you to decide whether the coin or token you are looking for is genuine or not, and so does the related project.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
