Checking a token before you touch it

Summary

Before trusting a token, check who is behind it, whether the contract address matches the one on the project's official site, how the supply is split between the team and the public, and whether trading can be blocked or taxed by the owner. Very few holders owning most of the supply, an anonymous team with no history and locked selling are serious warning signs.

Key points

• Match the contract address with the official source.
• Look at how the supply is split and who controls it.
• Check whether the owner can block selling or add hidden fees.

Check yourself

Why compare a token's contract address with the official site?

Practice