basic-terms
Commonly encountered phrases in the trading of meme/shitcoins.
RUG
These are projects or coins designed to deceive. Various tactics are employed to create a RUG, such as eliminating liquidity, setting the tax to 100%, halting the contract, or blacklisting wallets, all with the ultimate aim of taking your money.
Honeypot (HP)
A token purchasable but not sellable due to elevated taxes or special functions coded into the contract.
CA - Contract Address
Used to search for coins on different platforms and to verify whether they are Honeypots. Avoid using token names for searches; only rely on contract addresses.
Liquidity Pool (LP)
A trading pool for a token, typically established on platforms like UNISWAP, SUSHISWAP, SHIBASWAP, etc. It takes the form of a pair like ETH/USDT or WETH/DOGE. The initial pool is provided by the contract creator, then it operates automatically, funded by traders.
Lock Liquidity
For holder security, creators secure liquidity on dedicated sites or direct it to a burn address. Unicrypt or Team Finance are commonly used for this purpose (be cautious with PinkSale).
Renounced
Indicates that the developer can no longer alter the contract. However, verify the legitimacy of renouncement, as fake renouncements can occur. Check how ownership was renounced.
Verified
Denotes that a contract has been verified and can be fully examined on etherscan. Unverified contracts might have undisclosed features pointing to potential scams, so prioritize verified contracts.
Slippage
The percentage by which a token's price can change. For instance, a 30% slippage means that if the token's price shifts by 30% during your transaction, you'll still make the purchase. Recommended slippage is 5-10%, dependent on hype.
Sandwich Attack/Bot
Refers to bots trading low-tax tokens as people employ high slippage. If you set a 50% slippage and a 0/0 buy/sell fee, the sandwich bot buys before and sells when you buy, often leading to unfavorable prices.
Bullish Deployer
The contract creator associated with successful projects through multiple addresses.
Bots/Snipers
Nearly every coin's launch involves bots and snipers purchasing early. They make substantial profits but are also susceptible to RUGs. Some exit quickly, while others hold out for significant gains.
Blacklist
Some developers use it to deter bots and snipers from pumping coins in the initial minute. However, it can also be exploited to prevent token sales and blacklist wallets.
MCAP / MC - Market Capitalization
Calculated as total supply multiplied by its price.
Liquidity Removal
Occurs when a scammer drains the liquidity pool, causing the coin's value to plummet to zero.
TAX
Refers to the tax on token buying and selling, subject to change until renounced.
Deployer
The individual who creates the contract.
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