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How to detect Rug pull crypto projects

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How to detect Rug pull crypto projects

As with anything in crypto, crypto projects have become popular enough and they are being used by scammers to steal from their users. 

What goes behind the scenes in a cryptocurrency token that has been offered to new investors?

For example, Uniswap is no different.

When a market is created on Uniswap, the liquidity provider also known as the LP deposits an equal value of two tokens to create a pair. The depositor receives a pool token in return with an ERC20 token representing their stake in the pool. Now the pool token may be redeemed at any time for an equal value amount of both tokens based on the value at the time of redemption.

Read: How to spot fake/scam crypto projects – Read this before investing in crypto

Scammers would create and promote a new token and provide a large amount of liquidity to the parent, simply tricking buyers into thinking the token has a healthy market and possible future. Now once enough people force buy into the token,  the scammers would redeem all the liquidity tokens and receive all the Ethereum from the pull. 

I know you are already curious, we are going to answer the questions below:

  • What is crypto Rug pull?
  • How does crypto Rug pull work?
  • 3 main ways a crypto Rug pull happens
  • How to detect incoming Rug pull crypto projects?

Table of Contents

What is crypto Rug pull?

A crypto Rug pull is a malicious operation in the cryptocurrency industry where a cryptocurrency developer abandons a project and takes the investor’s money away. A crypto Rug pull typically occurs in decentralized finance (DeFi) ecosystems, especially decentralized exchanges (DEX). A malicious individual creates a token that he lists on a DEX and pairs it with major cryptocurrencies like Ethereum.

Let’s say you are a new investor and you take your deposit to me and decided to go for the newest and hardest cryptocurrency out there without knowing too much of the crypto sphere, you are following what you see on social media and buy a low-marketcap cheap token, you see your initial investment jump from 2x to 3x and then you see an extra 10x but when you check the net morning, the price has droped to almost zero.

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A Rug pull happens anytime a developer of a token runs away with the investors’ funds.

How does crypto Rug pull work?

 A rug pull is a malicious scheme in which crypto developers create a worthless token and list it on a decentralized exchange. Here the new token is traded within a liquidity pool against an established token such as Eve.

To attract investors into the liquidity pool, the scammers promote the project on social media, promising high returns. As more and more investors put their Eth in the liquidity pool, the price of the new token increases. 

At a certain point the scammers pull the rug they drain the pool of all the Eth and disappear with the funds.  that immediately crashes the price of the new token, leaving all investors holding the worthless backs.

3 main ways a crypto Rug pull happens

There are three main ways crypto Rugpulls happen;

1. Yanking liquidity:

Whenever a developer creates a new token they must create a way for new investors to trade that token, and to do so they put a portion of some valuable tokens and a portion of their newly-minted worthless token, both of these go into a trading pool. This allows the new investors to give them valuable tokens to receive the developer’s newly-minted token.

However, as time goes on and as more investors invest, the price of the developer’s token increases, the developer can rug pull the token by pulling out their initial liquidity, by doing this; the investors don’t get back the initial amount of worthless token and the valuable tokens that they originally put in due to how automated market makers work.

After they yank out the liquidity, they will essentially have lots more of the valuable tokens than they started with and all the investors will not be able to trade.

2. Developer selling their shares

The second form of rug pulling can happen by developers selling their shares. So essentially, they created a worthless token, anyone can create a worthless token, a token has value if it does something or if other people think it has value. A developer might convince a large majority of people that their token has a promise, for e.g they might say they have a new platform that is launching soon and when it does it will be the next big blockchain something.

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When they get a lot of investors to buy their tokens, they sell all their tokens they gave themselves during the token development.

3. Inability to sell

This is the craziest of the three, developers can add some codes to their token that will literally not allow users to sell but can only buy. Since everyone is buying the price will go up and once the price is up, the developer rugs the project.

How to detect incoming Rug pull crypto projects?

1. Check the team’s background and social media. 

find out information about the tokens development team. If the developers are anonymous, it’s already a red flag if the team’s information is available you should check how solid the reputation and background are.

It’s really about measuring the trustworthiness of the team; are they anonymous? Who are they? Do they have a good background in the crypto industry?

You often see websites where they just take some random LinkedIn photos and created a fake team. Many of those had been exposed.

Read: How to find New crypto projects – Detailed guide

Check the project’s social media and telegram chats. This helps to understand how genuine the enthusiasm around the token seems and how authentic the community involved is. figure out how people are acting in there. Does it look like they’re talking to each other or it’s a lot of people talking? Or are people allowed to bring up topics that are not only promoting the token?

When anyone ask any kind of hard question, if the individual get banned, muted or deleted, it’s probably a scam.

2. Project audition

A legitimate project should undergo an auditing process by a reliable third party service. If it wasn’t, then you should be cautious. It means the code may contain bugs that could be exploited to steal users funds.

Unfortunately, audits are usually expensive, and few projects can afford them. And even if the project was audited, make sure you read the actual audit. 

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3. Test your ability to sell

Sometimes fraudulent projects contain hidden code that prevents people from withdrawing their funds from the liquidity pool. That is why you shouldn’t invest a large amount of money into a project or coin until you know for sure if and when you would be able to sell. 

4. Check the token distribution and concentration

If a large amount of the tokens are concentrated in the hands of a few people, that is a red flag. It means that a bunch of whales could potentially dump their bags and crush the tokens price. You can easily check the tokens concentration by using a block explorer such as Ether scan or BSC scan.

5. Liquidity locking:

Another important thing to look for is whether the liquidity has a time lock on it. 

A time lock is a security mechanism that prevents developers from removing liquidity from the pull and make away with investor’s  funds.  As long as most of the liquidity is locked,  95 to 100% is locked then there cannot be a rug pull.

6. Check independent auditing websites

Platforms such as token sniffer Rug Doc and BS check are run by experts who bought Defi tokens. They break down most of the metrics we mentioned here so far, and the rate the tokens according to risk levels. Also, there are telegram communities where you can ask about a specific project.

Conclusion

Identifying a project as a rug pull is not straightforward in the unruly Defi space the border between a fraudulent project and the latest meme coin can be very subtle. 

Sometimes it all comes down to your own goals and appetite for risk. If you’re looking for solid legit projects with real use cases, then the indications we have given you are going to be valuable. But if you’re looking for quick gains and decide to ignore this advice, go in at your own risk,  no matter how safe it is people are still going to go into unsafe things because the unsafe things are going to be the ones that are more likely to return the biggest returns quickly.

Now since you’ve learned how to spot/detect crypto Rugpull projects, why not check: How to start your crypto journey as a beginner

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How much do cryptocurrency bloggers earn?

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How much do cryptocurrency bloggers earn?

If you are curious about a way to make cash as a cryptocurrency blogger, you are in the right place.

In this article, we’re going to talk about the diverse approaches by which you could earn an income through your writing.

We’ll begin by outlining the fundamentals of cryptocurrency and running a blog, after which we’ll circulate directly the diverse ways that you could monetize your content material. We’ll additionally offer a few suggestions for developing your target audience and creating top-quality content. So, if you are geared up to begin creating wealth as a cryptocurrency blogger, read ahead!

Table of Contents

What are cryptocurrency bloggers?

Not sure who the cryptocurrency bloggers are? They’re the people who write approximately about Bitcoin, Ethereum, and all matters cryptocurrency.

They may be specialists within the area or simply beginning out; however, one issue is certain: they may be obsessed with the topic. And as the recognition of cryptocurrencies continues to grow, so does the demand for nice content. 

So if you are contemplating beginning a cryptocurrency blog, you could guess that there may be lots of possibilities to make cash. 

Read: How much can I make as a blockchain developer?

How cryptocurrency blogs make money

Cryptocurrency bloggers can doubtlessly earn a number of dollars, depending on their level of information and the quantity of time they’re inclined to spend making money on their blog. For example, a few bloggers have mentioned earning up to $10,000 per month from their blogs. This is an outstanding figure, and it’s easily achievable with determination and hard work. However, it’s crucial to understand that this isn’t always the norm, and most cryptocurrency bloggers will now no longer make this form of cash.

The additional amount of cash a cryptocurrency blogger could make depends on the type of content they produce. For example, a few bloggers may be aware of the importance of supplying academic content, including tutorials and guides, at the same time as others may be aware of the importance of supplying information and analysis. 

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Educational content has a tendency to be more lucrative, as it may be offered at a better rate than information and analysis. Additionally, a few bloggers provide consulting offerings or create services associated with cryptocurrency, including buying and selling bots or software program tools, which can also be very profitable.

Who are the top earners within the field of cryptocurrency blogging?

So, you need to recognize how much cash you could make as a cryptocurrency blogger.

Well, it genuinely depends on who you ask. There are a few bloggers who’re creating a fortune, while others are nevertheless simply scraping by. But as a general rule, the more famous and well-respected your blog is, the more money you could assume to make.

There are some pinnacle earners within the area who are really worth mentioning. For example, David Genix from Davidgenix.com, John Biggs from TechCrunch is a writer, consultant, programmer, and former East Coast Editor. He writes especially about technology, cryptocurrency, security, gadgets, gear, wristwatches, and the internet. He is expected to have made over $500,000 from his blog in 2017. And David Seaman, who became a visitor at the Joe Rogan Experience Podcast as soon as it launched, has mentioned incomes over $100,000 in an unmarried month on his blog.

Obviously, those numbers depend on your visitors and how engaged your target market is. But if you are trying to make cash as a cryptocurrency blogger, those are the people you want to be following.

How much can a cryptocurrency blogger expect to earn?

You are probably wondering how much you might earn as a cryptocurrency blogger.

Unfortunately, there may be no clean solution to this query because it relies on a number of factors. For example, how famous your blog is, how regularly you post, and what kind of content you write will all have an effect on your earnings.

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If you need to maximize your earnings, I suggest posting often and writing engaging, beneficial content as a way to appeal to readers. You also need to recall accepting donations or promoting services in your blog.

Read: How to reduce Cryptocurrency Risks and Protect your Profits

What skills and expertise help with earning From a cryptocurrency blog?

You are probably wondering what capabilities and know-how assist with generating income from a cryptocurrency blog.

The most critical talent is manifest expertise in the cryptocurrency marketplace. This may be hard because the marketplace is continually changing; however, if you’re updated on state-of-the-art information and trends, you will be in an excellent position to provide insights and predictions that your readers will find valuable.

In addition to expertise in the marketplace, it is also critical to know how to write well. This approach is capable of expressing your thoughts truly and concisely. You do not want to be an expert writer, but being capable of expressing your thoughts in a manner that is easy for others to understand is critical.

Factors that affect cryptocurrency blog earnings

In addition to the type of content material you produce, there are numerous other elements that can have an effect on your earnings. For example, the scale of your target market is a critical factor. The larger the target market, the more potential there may be for making a living via marketing and promoting products. Additionally, the quality of the content material is likewise critical. If the content material is well-researched and engaging, it’ll entice extra readers and doubtless extra profits.

Finally, the quantity of time you’re inclined to put into your blog is likewise a chief factor. The more time you spend growing content material and selling your blog, the more likely you are to earn cash from it. Additionally, having excellent expertise in SEO (search engine optimization) allows you to grow your visibility and reach a bigger target market.

Finally, it allows for a few simple Internet improvement capabilities. This can be available on hand in relation to putting in place and dealing with your blog. Knowing how to code isn’t always necessary, but it may surely be a precious asset.

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How to build a successful cryptocurrency blog

Building a hit cryptocurrency blog takes a number of years, but it may be pretty profitable both financially and emotionally. First and foremost, you want to be a professional at the topic. You have to have an organization’s expertise in the way the generation works, in addition to the state-of-the-art information and trends within the space.

Second, you want to be an excellent writer. This is critical for any sort of blog, but it is particularly critical in the cryptocurrency world due to the fact that there is a lot of complicated jargon. You want a good way to give an explanation for complicated standards in simple English (or whatever your blog’s language is).

Third, you want to be energetic on social media. This is how you will acquire new readers and develop your target market. 

Last, but not least, you want to be patient. It takes time to construct a hit blog. But if you keep at it and roll out first-class content on a regular basis, in the end, people will become aware, and you will begin seeing results.

Conclusion

So, in case you’re contemplating beginning a cryptocurrency blog or are already in the process of doing so, it is critical to understand what you may doubtless earn from it. The correct information is that there is the ability to earn a lot, but the amount you are making will depend upon some elements, including your blog’s reach, the quality of your content, and how you are capable of monetizing your blog.

At the end of the day, cryptocurrency blogging is an excellent way to make a few extra dollars and will even grow to be a full-time profession if you’re capable of constructing a huge and consistent following. Just ensure you put in the tough work and convey tremendous content, and you also have to be to your manner to earn an excellent profit out of your blog.

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5 skills needed to become Blockchain Developers

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If you are looking to be successful in the role of a blockchain developer then skills which spans from cryptography to smart contract and then web development must be taken into consideration. 

With Blockchain grabbing the attention of the whole world, there is a rise in the software development known as the Blockchain development and this is becoming a piece to chew on and so many people have become independent through acquiring the necessary skills to make some earnings as a developer and you can also be one. 

Before we delve into the skills, there are some concepts that need to be addressed:

Table of Contents

What is Blockchain? 

Blockchain can be defined as a chain of blocks containing data. They are immutable records of data that are not owned by a single entity but it uses the basics of cryptography for its verification and through computers across a network. The block data after being added to the chain cannot be reversed and this ensures the security of the blockchain process. 

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Watch the video below to learn more:

Who is a Blockchain Developer? 

A blockchain developer is one who understands the fundamentals and the basics of the decentralized blockchain system ranging from the Blockchain architectural designs and technology to knowing how to fully implement these systems. As a developer, you must proficient in the programming languages needed to build these blockchain components and with a skill engulfing smart contracts. 

5 skills needed to become Blockchain Developers

Here are some top skills that will be required to become a Blockchain developer in order to get hired:

1. The Blockchain Development Theory 

With the cutting-edge technology of blockchain, a developer must be equipped with an outstanding knowledge of what exactly is the theory of blockchains. To become a Blockchain developer then you must have knowledge about blockchain and its terminologies at the tip of your finger always ready to blast them out like a furnace and this knowledge is a must-have as this is the first part of the journey. 

This theory covers sections from smart contracts, nodes, wallets and miners. Don’t be perplexed about these terms a little journey to enrolling for a blockchain course can scale you through easily to landing all these terms on a platter of gold. 

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2. Programming 

Getting knowledge about programming will put you ahead of other blockchain developers. programming languages such as Solidity which is a programming language that was made for writing smart contracts and which runs on the EVM also known as Ethereum Virtual Machine to Viper, Golang, C# which is similar to Java and C++, to Java and simplicity. All these programming languages are necessary to increase your tentacles of knowledge and to make you one of the best. 

3. Smart Contract 

Smart contracts are collections of codes and data that saves in a given address that runs on the Ethereum blockchain. To become a blockchain developer, you must acquire the know-how of smart contracts, its importance and applications, and also the programming languages which are necessary to execute its actions such as Solidity and Viper. 

4. Data Structures 

With an in-depth study of the Blockchain network, a blockchain developer should be equipped with an understanding of the Blockchain data as this is one of the core aspects of the network. Recall that this whole platform of the Blockchain network is built using data structures and as such this is inevitable because it will help you further understand the domain of the entire blockchain network. 

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5. Cryptography 

Looking to keep the network secured? This is a must-do. Cryptography is an integral component of the Blockchain network. It helps to protect sensitive information, wallets and ensure that the content embedded in these safe sections are only accessible to the owner. Cryptography helps to prevent access of unauthorized individuals to a particular data in the Blockchain Technology, A smart move and a must-have skill as a blockchain developer. 

 With the last piece on this content, Web development is also not a term to be thrown out of the list. Understanding the technology of web designs and web applications and what it takes to optimize and secure them must be taken into consideration for a blockchain developer. 

You can take a step forward today and start a career on the most highly-sort skill today; the Blockchain development. 

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Free guide on how to create NFT and sell them on opensea.

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Create NFT for free.

I am going to show you step by step how to create and sell an NFT for free on opensea using the polygon network. So let’s not waste anymore time and get started.

Connecting your Metamask to Opensea.io

first, what you have to do is to head over to opensea.io. Now, you have to connect your crypto wallet to opensea.io to do so, click on the icon on the top right corner of the page and choose the wallet that you are using from the list, if you don’t already have a wallet, you can create one easily with meta mask. If you want to know how to create a meta mask wallet, watch the video below to learn how to create one.

Now, you have successfully connected your crypto wallet to opensea.io, the next step is to create your NFT. To do so click on the create icon right there. Now you will be taken to the create new item page where you have to add the file that you want to convert to an NFT and fill up all the details about your NFT.

Now, click on the image and upload the image that you want to convert into an NFT, make sure that the file does not exceed the max size of 100 MB. If you haven’t designed an NFT yet, don’t worry, watch how to create an NFT very easily using canva on the video below.

Now give a name to your NFT, it can be anything you like, for example; ‘crypto punks’ or ‘bore-days’. After giving a name to your NFT, you can add an external link to the official website of the NFT, collection or any other page that you want. It is optional, you can do it if you want. Enter a brief description of your NFT project in the box provided and head over to the next box. You can add the NFT to an NFT Collection if you want. If you want to create a new collection and add the NFT project to it. I will explain in the course of this blog, so keep reading till the end. Now you can add different properties to your NFT, these are the textual traits that show up as rectangles under the description of your NFT project.

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These properties determine the rarity of your NFT, the value of the NFT increases if it is rare. So just add a few properties to your NFT. By clicking on the ‘add’ button and adding as much as you want. Now you can add levels which are the numerical traits that show us a progress bar and stats which are the numerical traits that just show us numbers to your NFT project by clicking on the plus icon to the right of them and entering the properties. Now we have the option to include any unblockable content in our project. Unblockable content can only be revealed by the owner of this NFT. You can include this option if you want to stand out from other NFT projects, you can add anything under the ‘unblockable content’ tab for example, you can add a link to download some kind of a file or you can add your email address so that the buyer can email you and you can send the physical copy of the NFT to their address.

How to create and sell NFT

Now we have explicit and sensitive content. You can turn this on If your content is explicit or sensitive. Now you can see the supply of your NFT, it is already set to one, leave it like that. We have the option to select a Blockchain to mint our NFT, this is the most important part of this writeup. If you want to meet your NFT for free without any gas fees, then you should select the polygon Blockchain from the options, you can also go with Etherium But the problem is its high gas fees.

Now below the ‘Blockchain’ tab you can see an option to freeze your metadata. You can choose to freeze the metadata after minting your NFT, if you freeze your metadata, you won’t be able to change the details of this NFT later, it will be locked and stored in a decentralized file storage.

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Once you have added all the required details about your NFT you can now click on the ‘create’ button. Now opensea.io will mint your NFT onto the polygon Blockchain for free. You can see that you’re NFT has been created and you can share it with anyone you want. This is how you can mint any NFT to the polygon Blockchain using opensea.io. If you close the tab you can see what your project will look like when someone checks it out, you can edit it if you want by clicking on the ‘edit’ button and you can also sell it by clicking on the ‘sell’ button.

How to create an NFT collection

I will show you how to create an NFT collection and add the NFT that you have just created to it, to do so hover your mouse pointer around the profile icon and click on ‘my Collections’. You will be taken to ‘My Collection’ page. Now click on this icon that says ‘Create a Collection’ and then upload a logo for your NFT collection, then you can add a featured image and a banner image for your collection if you want.

Now give a name to your collection, then you can customize the URL of your NFT collection. From here, you can add the name of your collection at the end of the URL. Now you can add a description for your collection, it will make it look more professional if you want you can add your collection to a category. Now you can add links to your website and social media accounts.

I recommend you do that as it makes your collection look more professional. Now we have the creator earnings which is a fee collected when someone resells your NFT, this will be paid monthly to a payout address of our choosing. You can enter how much you want to get as a fee every month over here. Now you can paste the address of the wallet that you want to get paid in every month. Now you can choose the Blockchain to which you would like new items to be added by default.

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You can also choose the currency that can be used to buy and sell the items in this collection. You can change the display theme if you want. Check the midde box, If your collection contains any explicit content, now click on create and like that you have created a new NFT Collection.

To add the NFT that you created earlier to your collection, go to your profile by clicking over the ‘Profile’ icon. Now, open the NFT that you want to add to the collection, click on the edit icon on the top right corner, scroll down to the collection section right there and choose the collection that you just created from the list.

Now scroll down and click on, submit changes like that You can add any NFT to a collection that you created.

How to list the NFT for sale

Now I will show you how to list the NFT that you have just created for sale without paying any gas fees. To do so, click on the sell icon on the top right corner of the page. Now you can enter the price for which you want to list your NFT For sale. You can select the duration of the listing then click on the complete listing button right there. Now you will have to sign the message using your meta mask wallet and after doing that your NFT will be listed for sale.

You can see all the details about the listing by scrolling through the page, you can also cancel the listing if you want by clicking on the ‘cancel listing’ icon.

If you enjoyed this writeup, make sure to leave a comment below, and if you want more of these writeups, make sure to subscribe to our email notifications to get notified, whenever I make a new writeup.

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