Dear Degen community,
I’d like to share some recent insights.
Primarily, it’s important to be wary of airdrop-based meme coins. Receiving meme coins just by disclosing your address seems unlikely. Simply disclosing your address could result in various dust being sent to you in the future, and you could be targeted for dust attacks based on this.
There might be some where you actually receive meme coins, but there could be a pattern where you are temporarily delighted, but then rug-pulled when you buy more.
Therefore, if you are going to trade, it’s better to choose tokens in the Ethereum (ETH) ecosystem, which has a high barrier to entry. (Of course, you need to trade within the range you are willing to potentially lose all your investment.)
On other blockchains, the cost of creating a smart contract for a meme coin is very cheap, making it easy for scammers to create coins. Also, because buying and selling can be done easily, the barrier to entry is too low, making price manipulation possible for anyone.
However, with tokens in the Ethereum ecosystem, the cost of deploying a smart contract alone is quite high, reducing the likelihood of fraud. Also, even if you buy, the gas cost is considerable just to sell, so you can’t casually trade for fun.
In that sense, high gas costs are not all bad.
However, due to the nature of cryptocurrencies, there’s always a possibility of pump & dumps occurring among buyers. That is, there’s always the possibility of being manipulated by whales. But the likelihood of the coin itself being a scam is low because the chances of operators running away are less.
Lastly, it’s crucial to double and triple check the contract address.
There are a lot of people creating fake coins with very similar names, so it’s safer to copy the contract address from the official site or official Twitter and paste it into Uniswap or similar platforms when trading.