Holding 100,000 $SNIPE tokens grants access to the proprietary AnySniper Contract Analysis Channel, as on date. How does the ordinary DeFi investor use it best to protect themselves?
To put it simply, our Contract Analysis places data points at your fingertips which you can quickly use to assess the potential of any token as an investment opportunity.
A Bird’s Eye View
Let’s take this Contract Analysis of the recently launched Vulture token, for example. At least five kinds of data points are provided to us. The genesis of a contract, that is, who created it, and the contract address itself. Let’s throw in the Dextools link as a point of convenience, for quick access.
As to the the particulars of a contract, these are its name, total circulation, symbols and decimals. These details do not change once captured in our CA channel. The owner balance might, because a subsequent transaction might bring in more capital to the owners’ wallet. The particulars can be used to compare a deployed contract with the token owner’s declaration of its actual details (remember, for hyped launches, one often sees multiple fake contracts!).
The instant buy details equip $SNIPE holders to set up their DApp positions in time to buy early on the token launch. Of course, if there are measures like dead blocks to disincentivize instant buys, you can appropriately configure our DApp to buy upon the end of that period.
The contract hash is a nifty little addition to our Analysis bot. Clicking on its hyperlink allows you to study in our CA channel how many other identical contracts have been previously created. This may indicate that the contract in question is a fork, or that its creator is simply lazy, or even that it’s a potential rug. The final decision to invest is always yours, and we always invite you to exercise the greatest caution with your funds.
A Closer Look
How should this data be used, ideally? You could:
- Click the hyperlink to the Owner’s wallet. That will allow you to see activity that leads up to a token launch, such as the initial liquidity being deposited in the Owner’s wallet, the Vulture contract being created, certain contract functions being modified, liquidity being added and trading being enabled.
Here, you can see that liquidity for the Vulture token was brought in from the Coinbase central exchange. This means that you cannot track the liquidity trail further. In hindsight, as of writing this post, this token has done fairly well. At the moment of launch, of course, there was no telling whether it was legitimate given its deployer wallet was anonymous. In the case of other tokens, liquidity may be brought in from Tornado Cash, ensuring anonymity. Lazy scam developers may fund new tokens from their existing scam wallets, which of course helps you immediately flag a token off as a potential rugpull and protect yourself.
2. Click the hyperlink for the Contract address, it will take you to the Vulture contract particulars on Etherscan. This will let you see corresponding interactions of the Contract owners with the Vulture token contract, as well as its particulars. Note that the snapshot hereunder was taken nearly 48 hours after token launch and so the number of holders and transfers has already risen from its initial figures.
Using the first two hyperlinks, then, a $SNIPE holder can study a recently deployed but yet to be launched token, within seconds. DeFi is a tricky space with a lot of unknown unknowns, and so it is critical that every available data point be aggregated to make an informed decision as to whether a particular launch is worth investing in.
In addition to these, of course, one of the finest set of data points provided to $SNIPE holders are the manner in which the contract’s owner interacts with the token contract, and what measures have been put in place to counter an instant buy
In the above image:
- Liquidity entails the contract interaction whereby a token owner adds liquidity to the token contract. Typically, this is when one can buy a token instantly. Of course, this can change from one contract to another! Certain owners may have to enable trading. That would also be detailed in our Contract Analysis.
- Limits indicate what is the maximum percentage of a token’s circulating supply you can purchase, and the maximum such purchases you can fit into a single wallet. So, for instance, in the Vulture token, you could buy a maximum of 1% of its tokens in a single purchase, and one of your wallets could hold a maximum of 2 such purchases (1%*2). These functions allow a smart contract deployer to limit early instant buys by imposing low max transaction limits, in some cases.
- Tax details are self explanatory. Tokens, be they meme or utility, levy taxes on buy and sell transactions to fund an array of purposes. Always be cautious about high taxes and take the effort to track how they are used!
- Anti-Sniper particulars are critical when configuring an instant buy. Dead blocks indicate such blocks in the token contract which are configured in a manner that defeats the purpose of buying early. In the Vulture token, for example, if you had bought in during the first 5 blocks, the sell tax for you would have been 100%, rendering it an effective honeypot for the buyers in the first 5 blocks.
- The Contract Hash, as stated above, is a small but thoughtful addition which allows you to identify identical contracts that have been deployed previously. As always, assessing the implication of the fact that there are previous identical contracts is entirely up to each $SNIPE holder!
Right. We hope this will give new $SNIPE holders a simple but digestible crash course into making maximum use of our proprietary AnySniper Contract Analysis channel. Remember, with $SNIPE, DeFi wins. The reason why token-gated access to this contract channel is kept at a low 100,000 $SNIPE tokens ($132.56 at the moment of writing this article) is that we want every DeFi investor to be able to equip themselves with the information required to trade safely and intelligently in this space. If you as a $SNIPE holder are convinced of the utility of what we have constructed, we invite you to tell every other ordinary DeFi trader to join our community and take steps to protect themselves, as well!