Any risks in buying memecoin in presale..
- Thread starter MIRANTHA
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- meme coins
ThePoorMan
Newbie
- Nov 28, 2021
- 13
- 8
Sure there are lot of risks, but also possible rewards DYOR. Generally (don't know/not referring to the coin you mentioned) value could crash, liquidity could disappear etc... find out if contract is audited, how about KYC at least of team?
- Jun 16, 2020
- 3,401
- 3,359
DYOR
Meme coins are here to make quick bucks only.
Dont get attached a project. cash out sooner whenever you can. Bitcoin is volatile and meme coins are unpredictable
Meme coins are here to make quick bucks only.
Dont get attached a project. cash out sooner whenever you can. Bitcoin is volatile and meme coins are unpredictable
TheGreyMatter
BANNED
- Mar 23, 2011
- 3,697
- 4,060
Putting any money into a memecoin is a risk.
They could possibly rug pull after pre-sale(very rare and funny lol) but always a possibility.
Or the rug pull can also happen right after the listing gets done and the prices reach the peak.
There are too many things that could go wrong with meme coins than the things that can go right so always be on your toes and get rid of them the moment you get a good opportunity!
They could possibly rug pull after pre-sale(very rare and funny lol) but always a possibility.
Or the rug pull can also happen right after the listing gets done and the prices reach the peak.
There are too many things that could go wrong with meme coins than the things that can go right so always be on your toes and get rid of them the moment you get a good opportunity!
blackbeans
Elite Member
- Nov 29, 2008
- 9,247
- 4,806
Buying meme coins in presale is actually the best way to increase your chances of actually making money on your investment.
With that said, you still have to do your own research and go through the standard due diligence checklist.
I'm talking about the following:
• Checking out whether there's a whitepaper on the project.
• Using common sense to figure out the viability of the actual use case (assuming there is any) for the token
• Looking at tell-tale signs like the initial wallets that are involved in the offer
• Figuring out if there's going to be a locked liquidity pool.
All these factors are vital for minimizing your risks because if you don't do your research and buy a coin that has open minting or is not locked in any way, you might soon become a victim of a rug pool.
You have to understand that meme coins are mostly only attractive because they piggyback on trends and momentum.
To see a sad example of how everything could go wrong, just check out that video on the Squid Game token where it crashed to zero in seconds.
The developers abandoned the project and drained the liquidity.
As I've mentioned above, you can use due diligence steps to reduce your risk of becoming victimized by a rug pull, but they're not guaranteed.
You can also check out Token Sniffer as well as Ethereumscan (ETH scan) to see what the initial transactions for the presale coin look like.
Of course, since this is a presale, a lot of this stuff is still hidden.
There is a big added layer of risk.
But as any experienced crypto trader will tell you, the higher the risk, the higher the reward.
With that said, you still have to do your own research and go through the standard due diligence checklist.
I'm talking about the following:
• Checking out whether there's a whitepaper on the project.
• Using common sense to figure out the viability of the actual use case (assuming there is any) for the token
• Looking at tell-tale signs like the initial wallets that are involved in the offer
• Figuring out if there's going to be a locked liquidity pool.
All these factors are vital for minimizing your risks because if you don't do your research and buy a coin that has open minting or is not locked in any way, you might soon become a victim of a rug pool.
You have to understand that meme coins are mostly only attractive because they piggyback on trends and momentum.
To see a sad example of how everything could go wrong, just check out that video on the Squid Game token where it crashed to zero in seconds.
The developers abandoned the project and drained the liquidity.
As I've mentioned above, you can use due diligence steps to reduce your risk of becoming victimized by a rug pull, but they're not guaranteed.
You can also check out Token Sniffer as well as Ethereumscan (ETH scan) to see what the initial transactions for the presale coin look like.
Of course, since this is a presale, a lot of this stuff is still hidden.
There is a big added layer of risk.
But as any experienced crypto trader will tell you, the higher the risk, the higher the reward.