Risk management is the last step before we make investment decisions. We can use a variety of tools to analyze the on-chain information of the currency to help understand the reliability of the meme currency project and reduce our investment risks.

Check smart contracts, addresses, transaction records and other information through the browser

Take ERC-20 format tokens as an example, you can browse them on Etherscan Details of the code seen on the browser, including but not limited to:

• Whether the code has been verified: whether there is a small check mark on the Contract label.
• Whether there are any suspicious heavy warehouse addresses: the first few in the Holders tag need special attention. Generally speaking, the more "dispersed" the distribution of tokens, the better. This means that there are many people holding positions and the project side is less likely to be suspected of manipulation. In addition, the sum of the currency holdings of the top 10 non-contract addresses (that is, addresses excluding exchanges and liquidity pools) should not exceed 20%. The information here is best viewed in comparison with the distribution plan in the token economy - if the project party has one.
• Is it possible that it is a Pixiu plate: If there is no selling record in the DEX Trades tab or there are only a few addresses selling, it is suspected of being a Pixiu plate.
• Whether leeks have been cut: There may be clues in the Comments tag.

Other useful detection tools

In addition, there are some tool websites that can help detect whether meme coins have vulnerabilities and risks. You only need to paste the copied contract address on the website to see the risk items detected in the contract. You can choose detection tools from official websites, such as the BNB ecological detection website with many meme coins, or some third-party detection websites. Here are some useful tools we have found on the market, as well as some brief introductions.

General smart contract detection tools

There are many free and useful tools in this field, including De.Fi, Token Sniffer, SolidityScan, etc. Their functions are basic. Much the same as above, you only need to paste the contract address of the project you want to detect into the search box, and you can immediately get a risk analysis report. You can choose one that is convenient for you.

Token Allocation Detection Tool

In addition to the above mentioned, you can understand the token allocation through the information in the browser. Tools such as Bubblemaps can also be used to detect whether there are suspicious heavy positions addresses.

Pixiu disk risk detection tool

You can use Honeypot.is, IsRug and other tools to assist in judgment , does a meme coin project have the risk of "only getting in but not getting out"?

It should be noted that although these detection tools can help us find project parties with poor deception, they cannot be 100% accurate. Meme Be cautious when trading coins.