Interest in cryptocurrencies is growing as Bitcoin increases in value and the cryptocurrency market is attracting many newcomers in the hope of making a fortune. However, this wave of enthusiasm should inspire both hope and caution among investors.
It's crucial for novices to recognise the potential dangers, including Ponzi schemes, which promise unrealistic returns.
Some projects not only present a high investment risk, but also pose pitfalls, such as 'honeypots' that lure investors with the promise of easy gains only to lock them in. The case of the SQUID token (a token created to ride the wave of the famous Squid Game TV series) is a perfect example of this kind of scam.
For those venturing into small-cap cryptocurrencies, tools such as https://tokensniffer.com/ offer analysis of tokens on various networks, helping to identify red flags and assess the reliability of projects.
Token Sniffer is a free online tool for detecting whether a token is a scam or legitimate. This handy platform can literally save wallets, but more importantly their owners.
Between rug-pulls and other tokens with dubious contracts, you need to be able to distinguish between a scam and a legitimate token. There are several tools you can use to do this, such as Token Sniffer.
Token Sniffer is a free website that provides a wealth of information about a given cryptocurrency. Using this information, the platform then provides a score out of 100, which represents the platform's degree of confidence in the token.
First of all, Token Sniffer only works with EVM-compatible addresses, i.e. addresses starting with 0x. It will therefore be impossible to verify a project built on the Solana, Avalanche or MultiversX blockchain, for example; unless the native token for this blockchain is "wrapped" on a compatible EVM blockchain.
Using Token Sniffer is very simple. All you have to do is visit the tool's website and enter the name of the token you want. It is also possible and recommended to enter the contract address. This avoids coming across other tokens with the same name.
A page is then displayed with a range of information, divided into positive and negative points. By entering the SPONGE address, Token Sniffer then displays a list of points that show the token to be objectively reliable.
The platform does have its limitations, however, as it sometimes lacks information about new tokens and cryptos in full listing. Still in the case of SPONGE, Token Sniffer does not recognise the existence of a liquidity pool and therefore lowers its overall score because of this information, which is simply missing. However, the tool offered by Token Sniffer remains very powerful in its field.
The analysis is clear: SQUID is a scam!
Token Sniffer is partnered with another very useful tool for detecting suspicious movements between different wallets: Bubblemap. You can find our tutorial on Bubblemap here.
By clicking on the Bubblemap button, you can access the token distribution of the 150 largest SQUID token holders. You can also see any links between wallets.
In the world of cryptocurrencies, scams are commonplace, making it essential to be able to identify them. Token Sniffer is an effective tool for detecting these scams, despite certain limitations. Nevertheless, its use remains a powerful way for investors to guard against potential fraud in this constantly evolving field.
