Most cryptocurrencies launch via ICOs (Initial Coin Offerings), or IDOs (Initial Dex Offerings), both of which allow early investors to enter projects at a low per-token cost. It is also common practice for cryptocurrency projects to partition a portion of their available token supplies into developer wallets, used to pay developers; marketing wallets used to popularize projects; and community wallets, used for community building.
The distribution of tokens between early investors and project wallets, and what is made available to community members, is called tokenomics. Cryptos with too few tokens made available to community members are said to have poor tokenomics because their supply is centralized. Issues in tokenomics should raise a red flag for new investors.
If a cryptocurrency project’s team or early investors own a disproportionate amount of its supply, they may be tempted to exit by selling all their tokens during a price run. This is how rugpulls happen – when the few parties that hold most of the tokens sell their entire holdings, the price plummets due to a massive influx in supply.
While most cryptocurrencies promise decentralization, if their tokenomics are centralized, they are not. This is because the majority token holders have full control of the cryptocurrency, and can easily manipulate the price. The outward appearance of decentralization with centralization under the hood is called decentralized illusion, and it puts investors at risk.
With thousands of cryptocurrency projects on the market, it can be difficult finding investment opportunities. Some seemingly good projects break down upon further research, for example, due to poor tokenomics and centralization. Investors can review social media to see what others are saying and if any issues regarding projects have been exposed. But that, too, takes a lot of time and doesn’t guarantee accurate information.
However, there is a solution that makes finding key project information easier. That solution is RiseUpV2, an in-built technology available in the form of an Android app and on the web, designed to protect investors from scams and rugpulls. RiseUpV2 does this with their innovative Rug Screener technology, which evaluates all aspects of tokens, generates reports for investors, and assigns safety scores to projects. Rug Screener delivers the following information right to investors, in just a couple taps:
- Team information
- Token smart contract information
- Other projects that the token founders have been a part of
- Supply and liquidity statistics
RiseUpV2 also reveals which wallets hold the most tokens, making it easy for investors to detect any suspicious transactions that may indicate a project is preparing to rugpull.
RiseUpV2 features solid tokenomics and a fully doxxed team. Additionally, RiseUpV2’s dev wallet is locked, meaning that developers are unable to sell any tokens whatsoever. So to see their wealth rise, they must continue to develop the project and satisfy investors.
RiseUpV2 is powered by Binance Smart Chain, home to hundreds of successful projects like PancakeSwap. RiseUpV2’s own and newly upgraded RIV2 token recently launched, and can be obtained on the Flooze.Trade exchange, directly through Moonpay. Moonpay allows investors to quickly make crypto purchases using debit and credit cards.