A token you can buy but not sell, or can sell only with a huge tax. The block lives in the contract.
How to check it yourself
- Run the contract through a token scanner that simulates a buy and a sell.
- Check the transfers. Many buys and almost no sells is a warning sign.
- Read the contract for sell taxes, blacklists or transfer limits.
Sources
- docs.webacy.comhttps://docs.webacy.com/guides/dex-token-screening
- world.webacy.comhttps://world.webacy.com/how-to-spot-a-rug-pull-10-essential-steps-for-crypto-safety
Keep learning
See all 48 lessons →Ask the community
Questions, corrections and topic ideas live in the FOMOEgg Telegram at t.me/fomoeggcto.
Join the TelegramEducation only. Nothing here is financial, investment, legal or tax advice, and nothing here is a prediction or a promise about price. Memecoins are extremely high risk and you can lose everything you put in. FOMOEgg is a community-run memecoin and is not affiliated with Robinhood, PONS or fomo.