How Can I Detect SCAM Tokens? AvaxTech has prepared a detailed article for you on how to identify SCAM tokens in the Avalanche (AVAX) ecosystem. In this article, you will learn how to identify tokens in the Avax ecosystem and gain detailed information about their reliability before making a purchase.

03/20/27 03:36
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How Can I Detect SCAM Tokens?

AvaxTech has prepared a detailed article for you on how to identify SCAM tokens in the Avalanche (AVAX) ecosystem. In this article, you will learn how to identify tokens in the Avax ecosystem and gain detailed information about their reliability before making a purchase.

Here are the topics covered in the article:

  • How to Detect Honeypots?
  • How to Examine Smart Contracts?
  • How to Check Liquidity Reliability?
  • Which Functions Could Pose Risks?
  • What to Pay Attention to in Smart Contracts?
  • Functions and Their Meanings
  • How to Make the Right Token Selection?
  • How Much Should I Invest?

These topics are essential considerations before purchasing any token in the Avax ecosystem to ensure you do not fall victim to scams. It should be noted as a warning before starting that the tokens, purchase transactions, and information provided here are for educational purposes only and are not affiliated with AvaxTech. Additionally, it is assumed that you have prior knowledge of token purchases in the Avax ecosystem. Watch our video to learn about purchasing tokens in the Avax ecosystem.

Let's get started.
First, let's find any Avax token to research, and for ease of demonstration, we'll choose a SCAM token. Let's start by finding the smart contract of a token that catches our eye on platforms such as Telegram, Twitter, Dexscreener, or Dextools.

We selected any token from the Dextools Live pair page. As shown in the image below, the token has an AUDIT label, indicating it's "reliable," but this may not be true! The most important thing to learn is that tokens that appear reliable can also be scams! We should never directly purchase a token without conducting our own research! The symbol of the token we chose is:
Token contract address: 0x5ba522a0f0ecb1c04dd6e15d310e60ff2b95b420

Before succumbing to FOMO (Fear Of Missing Out), we must first ensure that the smart contract of this token is verified and examine the trading transactions. The buy/sell amounts in trades will provide us with significant information about this token. As shown in the image below, the smart contract is verified. Tokens with unverified smart contracts should never be purchased! It's as risky as diving into the depths of an unknown ocean!

How to Detect Honeypots?

Before diving into smart contract examination and other details, let's take a look at the buy/sell amounts.

Note: In tokens that are honeypots, transactions typically involve high amounts of AVAX in purchases and low amounts of AVAX in sales.

The buy/sell transactions for the selected RATFLOKIAVAX Token appear to be in normal and correct amounts. The buy/sell image below, however, contains transactions for a Honeypot token.

Of course, we cannot determine this solely by looking at trading transactions. Now, we will use the Detecthoneypot website below to perform a Honeypot check for the RATFLOKIAVAX Token.
RATFLOKIAVAX Honeypot Detect: https://detecthoneypot.com/scan?address=0x5ba522a0f0ecb1c04dd6e15d310e60ff2b95b420&chain=avax

As seen in the image, the DetectHoneypot platform issued a HONEYPOT warning for RATFLOKIAVAX! In other words, this token can be bought but cannot be sold (Honeypot/Scam)! You should never purchase tokens that have this warning!

Let's continue by selecting a new token. The symbol of our new token is ZYPTO, and this token has a verified smart contract, a normal trading history, and appears reliable on the DetectHoneypot platform.

Of course, as we mentioned at the beginning, this does not mean it is trustworthy! We continue our research.

How to Examine Smart Contracts?

There are several methods to examine the smart contract of the chosen token. The best advice is to utilize all available resources to make a reliable investment.
https://avaxanalysis.com
https://de.fi/scanner
https://solidityscan.com/quickscan

These platforms are analysis platforms created to protect investors. By using these platforms, it's possible to gain insights into smart contracts (though it's important to note that these platforms do not provide 100% reliable results). We have conducted analyses on our chosen token using all the platforms mentioned above and encountered reliable results. Nevertheless, let's review the code ourselves one last time. Let's open the token contract source codes through the SnowTrade platform.

ZYPTO Token Source Code on Snowtrace: https://snowtrace.io/token/0x6deaccd2bdf1659bcffa21f55e5d6fd55f1f037b/contract/code?chainId=43114
By opening this link, we can examine the token's smart contract.

Let's click on the text highlighted in red in the image to enlarge the source code. You don't need advanced software knowledge to examine these source codes. With some practice and by examining tokens, you can acquire basic knowledge. Within the code, we should look for complex or meaningless code snippets that could indicate the token might be a scam. We should slowly scroll through the code and look for words like "jo9281klk". Each word should have meaning and be readable. For example, words like "Interface, transfer, burn, map" are meaningful and appropriate.

As seen in the image, the code "interface SGimnCVFyeXuFCYNxBuQkO" on line 123 does not make any sense, indicating that the token is 100% scam.

But why do these codes indicate a scam?
Due to the structure of smart contracts, each code block or imported library code is based on specific words or terms. Meaningless and unreadable codes are created for scam purposes by unofficial sources. Tokens containing similar codes should never be purchased!

At this point, our ZYPTO token has been eliminated, and we have identified it as a scam token. If everything appeared reliable and correct up to this point, the next step would be to check the liquidity of the relevant Avax token.

How to Check Liquidity Reliability?

You can obtain information about the liquidity of the Avax token you have selected by scanning its contract address on the Avaxanalysis.com platform. Let's get information about the liquidity of the ZYPTO token as an example.

As seen in the image, the liquidity of the ZYPTO token has been permanently burned! However, since the token's smart contract contains the aforementioned scam functions, the fact that its liquidity has been burned does not indicate reliability, and this token is a scam token.

What is Liquidity Lock and Liquidity Burn?

In order for tokens to be traded on a DEX (Decentralized Exchange), developers need to add a token such as Avax, USDC, etc., as collateral. For example, by adding AVAX/ATECH, a new LP Token is obtained. This token is given directly to the person (usually the Owner) who adds liquidity. If this LP token is not locked or burned, the person holding the LP token can sell all LP tokens, withdraw the AVAX/ATECH token amount from the pool, and close the relevant trading pool. This process is called a rug pull. To prevent this, two different methods can be applied: liquidity locking and liquidity burning.

Liquidity Burning
If the developer sends the LP tokens they receive from the pool to a wallet that does not belong to anyone, such as 0x000...dead or 0x000...0000, the LP tokens are considered burned. Since the LP tokens sent to the respective two wallets cannot be retrieved, the LP token is now considered reliable. This is because the developer or owner cannot withdraw the respective LP tokens by selling them!

Liquidity Locking
If the developer locks the LP tokens they receive from the pool on an intermediary platform, the liquidity is considered locked. Locked tokens cannot be withdrawn until the lock period, and the pool is still considered reliable.

Things to Consider Regarding Liquidity

The burning of liquidity does not make the token 100% reliable! It is always advisable to check other criteria as well! Make sure that the lock period for liquidity is a minimum of 3 months or more! Make sure that 85% or more of the LP token amount is locked or burned. If 40% of the LP tokens are locked, and the remaining 60% LP token amount is still not locked or burned, it means the developer can withdraw 60% of the money in the pool!

If the smart contract of the token, trading data, honeypot scope, liquidity status is locked or burned, we can proceed to perform other checks.

What is Ownership Renounce and Which Functions Could Be Risky?

There are many different functions in smart contracts that are related to the management of the respective token and can be controlled by the developer if ownership has not been renounced. Tokens for which ownership has been renounced cannot be modified in the smart contract. First, we need to check whether ownership has been renounced. This process, called "Ownership Renounce," can be checked in two ways. Firstly, you can go to the token page from the token analysis section on the Avaxanalysis.com platform to check this. The second method is to directly go to the Read section of the token smart contract and examine the Owner block.

The RENOUNCED message on Avaxanalysis.com indicates that ownership has been renounced, meaning that no further modifications can be made to the smart contract. If the place where RENOUNCED is written contained information belonging to a wallet, such as 0x92...9283, it would indicate that ownership has not been renounced from the smart contract.

https://snowtrace.io/token/0x6deaccd2bdf1659bcffa21f55e5d6fd55f1f037b/contract/readContract?chainId=43114
You can also directly visit the smart contract on the link below to check if the ownership has been renounced.

Ownership Renounced Addresses

Wallet addresses that start and end with 0x00...0000 indicate ownership has been renounced.
Wallet addresses that start and end with 0x00...dead indicate ownership has been renounced.

Functions That Could Pose Risks?

If the smart contract's ownership has been renounced and there are no risky functions such as Hidden Owner / Fake Owner present in the smart contract functions, the likelihood of other risky functions is lower. To identify functions like Fake Owner, Hidden Owner, Hidden Mint, it's recommended to use the following platforms:
https://avaxanalysis.com
https://de.fi/scanner
https://solidityscan.com/quickscan

It shows that the functions in the image above are stated as present/absent. Symptoms shown in green indicate that the relevant function does not exist, and symptoms shown in red indicate that the function is present.

Things to Consider in Smart Contracts!

If there are functions such as Tax Edit, Trade Pausable, Mint in the smart contract codes, it is important that the smart contract is waived. Otherwise, the contract owner may steal your money by imposing trade taxes of 50% or more, preventing you from selling the token. The same applies to the Trade Pausable and Mint functions. Therefore, waiving the smart contract is very important, especially for Meme tokens. DEX, CEX or Utility tokens may not waive the smart contract! This does not apply to tokens with utility and technology infrastructure, as they carry out their benefits on smart contracts. However, it is important that meme tokens have clean smart contracts with ownership renounced.

The same applies to liquidity. The liquidity of the token you choose must be locked or burned. This applies to all utility or meme tokens. Tokens whose liquidity is not locked or burned always carry great risks.

Functions and Their Meanings:

Hidden Owner: Indicates a hidden owner. This remains invisible even if ownership is renounced.
Fake Owner: Appears as if ownership has been renounced, but there is still an owner.
Tax Edit: Allows the contract owner to adjust trading taxes.
Whitelist: Enables the contract owner to determine which wallets can trade.
Blacklist: Allows the contract owner to determine which wallets cannot trade.
Mint: Enables the contract owner to mint more tokens. (Important for DEX or Stablecoin tokens, but not recommended for meme tokens.)
Trade Pausable / Cooldown: Allows the contract owner to pause trading.

How to Choose the Safe Token?

Never succumb to FOMO without finding reliable tokens and conducting thorough research! Tokens purchased impulsively can lead to loss of all your funds. Therefore, stay calm and proceed systematically by checking the following data:

  • Ensure the smart contract of the token is verified.
  • Make sure there are no inconsistencies in the trading data of the token.
  • Verify that there are no hidden meaningless codes in the smart contract of the token.
  • Ensure the token is clean on all analysis platforms and Honeypot check platforms.
  • Ensure the liquidity of the token is either burned or locked for a minimum of 3 months.
  • Check the top 10 wallets (holders) of the token. Be cautious of tokens with wallets holding a significant share.
  • Check the contract renounce status of the token. If not renounced, inquire about the reason.
  • Make sure the token has a website and research it thoroughly.
  • Make sure the token has a Twitter account and research it thoroughly.
  • Ensure the token has a community. (Telegram, Discord, Reddit) Avoid tokens without a community!
  • Join the token's community and read messages written by people about the token. If you have any doubts, consult with community members or administrators.

Join the AvaxTech Community for Answers to Your Questions About Avax Tokens!
By joining the AvaxTech Telegram community, you can become informed about Avax tokens with over +1,000 Avax investors. Gain quick access to detailed information about SCAM or SAFE tokens. If you don't have time for so much research, you can leave it to AvaxTech. Visit avaxanalysis.com to see tokens manually reviewed and verified by the AvaxTech team. This way, you can invest in various tokens without research, relying on AvaxTech for most of the steps mentioned above, ensuring a safe and fast investment.
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