Davide
@0xdavide
🚨What are the possible red flags in a project? Rug pulls and scams can strike suddenly but often leave on-chain traces before they collapse. One of the main warning signs for $OM was the low number of Unique Active Wallets (UAW) despite the market cap (and thus price) of $OM rising abnormally. ⚠️Main red flags: 🔹Unique Active Wallets (UAW): A sudden surge in wallets for no apparent reason or a sharp drop shortly after a token launch could suggest bot activity that is or has been skewing metrics by faking activity. A key factor is also the number of unique holders and how much supply they hold. 🔹Transaction Volume and Count: Unusually high volume combined with low user activity could indicate wash trading or internal transfers aimed at inflating engagement metrics. Unusually high transaction irregularities can also make activity appear higher than it actually is.
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Davide
@0xdavide
🔹Smart Contract Transparency: Unaudited smart contracts, limited GitHub activity, or anonymous developer teams pose greater risks. 🔹Engagement Over Time: Organic (rather than irregular with spikes and drops) growth in users and transactions over a period of months is often a sign. 🔹Social Pages: Keep in mind that many X pages could have fake interactions and followers. Profiles with 100k followers that have few interactions under the posts is synonymous with fake profile. Even likes, reposts and comments could be made by bots (fake interactions are easily recognizable).
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