Flend Research GroupMintable Tokens of DeFi: A Degen's Guide
If you've ever glanced at decentralized finance (DeFi) on platforms like Dexscreener, you might have noticed tokens flagged with the intriguing label "This token is mintable." But what does it mean to be "mintable," and how does this feature play into the high-stakes game of DeFi and degen trading? Let's look into this fascinating aspect of crypto trading. What Does "Mintable" Mean? In the simplest terms, a "mintable" token can be created or "minted" beyond its initial supply. This ...
Flend Research GroupPermissioned and Permissionless Blockchain
Permissionless blockchains, like Ethereum, Bitcoin, and Solana, are fascinating public networks that anyone can join, use, or validate without needing approval. These decentralized systems operate without a central authority, meaning no one has to fill out paperwork or prove their identity to participate. Let's look at it as a global ledger that is open to all, here every transaction can be traced and verified by anyone curious enough to dig into it. The beauty of this setup lies in its ...
Flend Research GroupUSDT,USDC and BUSD: SIMILARITIES AND DIFFERENCES
In one of our previous article we talked about stablecoins and how they have emerged as a bridge between the traditional financial world and the realm of digital assets. These stablecoins offer the stability of traditional fiat currencies while leveraging the speed and efficiency of blockchain technology. Three prominent stablecoins in this space are Tether (USDT), USD Coin (USDC), and Binance USD (BUSD). While they all share the common goal of being pegged 1:1 to their respective fiat curren...
Flend Research Group is a dedicated sub-department of Flend focused on providing comprehensive coverage of the financial market space.
Flend Research GroupMintable Tokens of DeFi: A Degen's Guide
If you've ever glanced at decentralized finance (DeFi) on platforms like Dexscreener, you might have noticed tokens flagged with the intriguing label "This token is mintable." But what does it mean to be "mintable," and how does this feature play into the high-stakes game of DeFi and degen trading? Let's look into this fascinating aspect of crypto trading. What Does "Mintable" Mean? In the simplest terms, a "mintable" token can be created or "minted" beyond its initial supply. This ...
Flend Research GroupPermissioned and Permissionless Blockchain
Permissionless blockchains, like Ethereum, Bitcoin, and Solana, are fascinating public networks that anyone can join, use, or validate without needing approval. These decentralized systems operate without a central authority, meaning no one has to fill out paperwork or prove their identity to participate. Let's look at it as a global ledger that is open to all, here every transaction can be traced and verified by anyone curious enough to dig into it. The beauty of this setup lies in its ...
Flend Research GroupUSDT,USDC and BUSD: SIMILARITIES AND DIFFERENCES
In one of our previous article we talked about stablecoins and how they have emerged as a bridge between the traditional financial world and the realm of digital assets. These stablecoins offer the stability of traditional fiat currencies while leveraging the speed and efficiency of blockchain technology. Three prominent stablecoins in this space are Tether (USDT), USD Coin (USDC), and Binance USD (BUSD). While they all share the common goal of being pegged 1:1 to their respective fiat curren...
Flend Research Group is a dedicated sub-department of Flend focused on providing comprehensive coverage of the financial market space.
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The pump and Dump scheme is not aboriginal to crypto. Dating back to the South Sea Bubble in the early 18th century, the King of Great Britain, George I, Isaac Newton, and the Royal Society among others bought stocks of the South Sea Company during its pump, when it crashed in 1720, countless investors, rich and poor, were victims.
What is a Crypto Pump and Dump? A crypto pump and dump is a fraudulent scheme where a group of people artificially inflates the price of a cryptocurrency (this is the "pump" phase), and then quickly sells off their holdings once the price is high (the "dump" phase). The goal is to trick others into buying the asset at an inflated price so that the original group can profit when they sell(wiki). Scammers select a low-volume coin to be pumped, start to create awareness on social media, making posts about partnerships, airdrops, insider tips, huge returns in a short while, whitelisting, and other benefits attached to investing in the project. After awareness is created, using false statements, they proceed to make organized purchases to validate their claims of a potential MOON. Due to the low volume of the cryptocurrency, little purchases make huge differences. They keep buying till they hold a high percentage of the total supply. Investors FOMO into the coin which will elevate the price more and more. Some only last a few minutes while others can last a few hours. The price will keep going up as long as liquidity is pulled in. The duration of a pump and dump is reliant on what the group agrees to. Once the price of the cryptocurrency pumps to its desired level, the perpetrators pull out their funds, which can be 10 or 200 million dollars. As they hold major shares of the cryptocurrency, the total sale of their asset will cause the price to plummet, leaving late investors with undervalued or worthless assets. Pump-and-dump scams in cryptocurrency markets are facilitated by the relatively low liquidity and lack of regulation compared to traditional financial markets. However, regulatory authorities are increasingly cracking down on such schemes, and investors are advised to exercise caution and conduct thorough research before investing in any cryptocurrency.
How to spot a pump and dump crypto scam: No matter how coordinated it may seem, some signals of a potential pump and dump scheme can't be hidden:
Sudden price spike of a low market volume currency.
Disparities between transaction volume and number of transactions (while researching a project, using the explorer to monitor asset movements is essential).
Lack of transparency. Don't be carried away by the charts alone, they can be manipulated to some extent. Focus on the team behind the project. If the team is legit, the project is legit.
Persuasive tactics . Beware of persuasions in any investment. Take your time to understand what you are venturing into. A project that hammers on the need to sign up immediately should be kept at arm's length.
Online hype without real-world application or presence. It is very easy to get victims online through aggressive advertisements online. We have to beware of beautiful sites and promises without any legit partnerships or use cases. Few tips to make the journey smoother will be listed below.
Avoid all unnecessary or noisy pumps in crypto. In 2022 alone, more than 80% of coins that were launched turned out to be pump and dump. Tread carefully while working in crypto. The worst is memecoins trading. A literal "slaughter house" as it is called.
The first has to be research. DYOR. This can not be overemphasized my people, always do your research before investing anywhere.
If an offer is too good to be true, it is. Don't fall for big bucks cashout after 2 days. It's all fake.
Verify all information before making any decision.
Use trusted platforms. A trusted platform will reduce the risk of fake news and hype.
Diversify your portfolio. Diversify your portfolio unless you are looking to maximize profits. Financial principles still support not keeping all your eggs in one basket.
Seek professional advice before investing. Get a mentor if possible.
Stay informed. Get up-to-date information from reliable sources.
At the Flend community, projects are analyzed by experienced traders and TA guys. There is a forum for everyone to talk about newly found projects to be discussed and verified.
Want to know more?You can join our communities below for more updates:
Kickstart your trading career here!
Register and get your welcome bonuses click here
The pump and Dump scheme is not aboriginal to crypto. Dating back to the South Sea Bubble in the early 18th century, the King of Great Britain, George I, Isaac Newton, and the Royal Society among others bought stocks of the South Sea Company during its pump, when it crashed in 1720, countless investors, rich and poor, were victims.
What is a Crypto Pump and Dump? A crypto pump and dump is a fraudulent scheme where a group of people artificially inflates the price of a cryptocurrency (this is the "pump" phase), and then quickly sells off their holdings once the price is high (the "dump" phase). The goal is to trick others into buying the asset at an inflated price so that the original group can profit when they sell(wiki). Scammers select a low-volume coin to be pumped, start to create awareness on social media, making posts about partnerships, airdrops, insider tips, huge returns in a short while, whitelisting, and other benefits attached to investing in the project. After awareness is created, using false statements, they proceed to make organized purchases to validate their claims of a potential MOON. Due to the low volume of the cryptocurrency, little purchases make huge differences. They keep buying till they hold a high percentage of the total supply. Investors FOMO into the coin which will elevate the price more and more. Some only last a few minutes while others can last a few hours. The price will keep going up as long as liquidity is pulled in. The duration of a pump and dump is reliant on what the group agrees to. Once the price of the cryptocurrency pumps to its desired level, the perpetrators pull out their funds, which can be 10 or 200 million dollars. As they hold major shares of the cryptocurrency, the total sale of their asset will cause the price to plummet, leaving late investors with undervalued or worthless assets. Pump-and-dump scams in cryptocurrency markets are facilitated by the relatively low liquidity and lack of regulation compared to traditional financial markets. However, regulatory authorities are increasingly cracking down on such schemes, and investors are advised to exercise caution and conduct thorough research before investing in any cryptocurrency.
How to spot a pump and dump crypto scam: No matter how coordinated it may seem, some signals of a potential pump and dump scheme can't be hidden:
Sudden price spike of a low market volume currency.
Disparities between transaction volume and number of transactions (while researching a project, using the explorer to monitor asset movements is essential).
Lack of transparency. Don't be carried away by the charts alone, they can be manipulated to some extent. Focus on the team behind the project. If the team is legit, the project is legit.
Persuasive tactics . Beware of persuasions in any investment. Take your time to understand what you are venturing into. A project that hammers on the need to sign up immediately should be kept at arm's length.
Online hype without real-world application or presence. It is very easy to get victims online through aggressive advertisements online. We have to beware of beautiful sites and promises without any legit partnerships or use cases. Few tips to make the journey smoother will be listed below.
Avoid all unnecessary or noisy pumps in crypto. In 2022 alone, more than 80% of coins that were launched turned out to be pump and dump. Tread carefully while working in crypto. The worst is memecoins trading. A literal "slaughter house" as it is called.
The first has to be research. DYOR. This can not be overemphasized my people, always do your research before investing anywhere.
If an offer is too good to be true, it is. Don't fall for big bucks cashout after 2 days. It's all fake.
Verify all information before making any decision.
Use trusted platforms. A trusted platform will reduce the risk of fake news and hype.
Diversify your portfolio. Diversify your portfolio unless you are looking to maximize profits. Financial principles still support not keeping all your eggs in one basket.
Seek professional advice before investing. Get a mentor if possible.
Stay informed. Get up-to-date information from reliable sources.
At the Flend community, projects are analyzed by experienced traders and TA guys. There is a forum for everyone to talk about newly found projects to be discussed and verified.
Want to know more?You can join our communities below for more updates:
Kickstart your trading career here!
Register and get your welcome bonuses click here
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