Imtiaz Gul
@jadoon007
Introduction to Security Risks in Solana Memecoins Solana-based memecoins often carry unique security risks due to their speculative nature and potential lack of development oversight. CertiK’s Token Scan tool offers insights into critical security areas, focusing on liquidity control, contract permissions, and token distribution to identify red flags. Using Token Scan to Check Liquidity Control Liquidity Control assesses whether a single wallet or group controls most of the token's liquidity. Centralized liquidity could lead to price manipulation or rug pulls, as the controlling party could withdraw liquidity abruptly. Example: If Token Scan shows 89.45% of liquidity held by a single wallet, this centralization poses a serious risk for investors. Assessing Liquidity Sufficiency Liquidity Sufficiency indicates how much of the token’s supply is available in decentralized exchanges (DEXs) for stable trading. Low liquidity can cause high slippage, making trades costly and difficult.
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Imtiaz Gul
@jadoon007
Checking the variability of token metadata Token Metadata Changeability reveals if the token’s attributes (like name and symbol) are mutable. Mutable metadata allows the team to alter token characteristics, which could lead to misleading changes. Example: Mutable metadata is a risk, as it allows the team to modify token details unexpectedly, potentially deceiving investors. Understanding the Token Scan Score The Token Scan Score aggregates all findings into an overall security rating. While a high score suggests lower risk, always examine any Attentions or Alerts highlighted in the results. High Score (80-100): Generally low risk but review flagged issues. Medium Score (50-79): Moderate risk; investigate flagged areas closely. Low Score (<50): High risk; proceed with caution.
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