How to Check if a Crypto Token Is a Scam (in 60 Seconds)
6 min read · Updated
Most scam tokens can be spotted in under a minute if you know where to look. You don’t need to read code or connect a wallet: everything you need is public on the blockchain. Here is the exact routine to run before you buy any new token.
1. Start from the real contract address
Scammers copy the name and logo of popular tokens. The name means nothing; only the contract address identifies a token. Copy it from the project’s official X or Telegram, never from a reply or a DM, and paste it into a checker such as the CoinsWavez rug checker.
If a well-known coin like PEPE or USDT shows up on a chain where it doesn’t normally live, with a different address, it is almost certainly a fake copy.
2. Can you sell it? Run a honeypot test
A honeypot lets you buy but blocks selling. The chart looks perfect because nobody can sell. A honeypot checker simulates a buy and a sell and reads the contract for sell blocks, blacklists and pausable trading. If the sell fails or the sell tax is above 10–15%, walk away.
3. Is the liquidity locked or burned?
The developer who added liquidity can usually remove it unless the LP tokens are locked in a locker contract or burned. Unlocked liquidity is the single most common way rugs happen. Look for 80% or more locked or burned on a new token.
4. Who holds the supply?
Open the bubble map or holder list. Ignore the liquidity pool, exchanges, lockers and burn addresses, then add up the top 10 real wallets. Above 30–50% is a warning; one wallet with more than 10% can crash the price alone. Check for bundles too: several top wallets funded by the same wallet usually belong to one person.
5. What can the owner still do?
Any of these lets the owner hurt holders later, even if the token looks fine today. Renounced ownership and revoked mint and freeze authority remove most of these risks.
- Mint new tokens (unlimited supply)
- Freeze wallets (Solana freeze authority)
- Change the buy or sell tax
- Pause trading or blacklist wallets
- Upgrade the contract (proxy)
6. Read the score, then decide
The CoinsWavez Sniper Score combines all of the checks above into one 0–100 rating, with the reasons listed. A high score means no major red flags were found, not that the token will go up. A low score means at least one serious risk. Use it as a filter, then do your own research on the team and community.