How to recognize pump and dump altcoins
Auxilium Finance Team
Unfortunately, since many of the new altcoins are scams, it is difficult for most investors to see if a project is actually just another pump-n-dump scheme. Therefore we have created a short overview with the most important points, which should help you avoid these sh#*coins.
Red flag # 1: No specific use other than pumping the token value.
If the project does not have clear goals in the roadmap (or no roadmap at all) and there is even talk of an experiment, one should refrain from investing here. There are very seldom exceptions here.
Red Flag # 2: Token burns for no other purpose than to increase the price.
The circulating supply may not be important at first to some, but here the high number of tokens and the frequent manual burning of the tokens can be an attempt to increase the price and quickly take profits. New investors in particular often get stuck in here and lose their investments.
Red Flag # 3: No development activities.
Check whether in the whitepaper or elsewhere in the project the development team is working on something that wants to change the world or metaverse and is in line with the project goals.
Pay attention to whether partnerships with other coins or exchanges are concluded that only aim to attract more new buyers without adding any meaningful added value to the project.
When buying a new coin, take a few minutes to do basic research on marketing and technical implementation. Scams are often easy to spot. The number of shitcoins popping up, especially in a bullish market, is staggering.
By spending a little time researching a project before putting your money into it, you may be investing in something that will benefit the entire crypto space, rather than make it worse.
Visit our Website https://auxilium.finance for more information.
Thank you for your attention and have fun with cryptocurrency!
