Over $666.5M Lost to Rugpulls in 2023, Here’s How to Escape Falling Victim

More than $666.5 million has been lost to rugpull crypto scams.
A Twitter user shares a guide on how to avoid becoming a victim to rugpulls.
This involves using a helpful data analysis tool called Bubblemaps.

Rugpulls in the crypto space have resulted in significant financial losses, with over $666.5 million lost in 2023 alone. A Twitter user draws light to these unfortunate events and compiles a thread to help guide the lost and misguided.

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According to the thread, the user walks readers through Bubblemaps, a tool that can help investors and traders avoid rugpulls. The user says this tool analyzes crypto projects and identifies potential scams. Thus, helping experts and newbies avoid becoming a victim to rugpulls.

The user says their guide will explore how Bubblemaps works and how it can help investors protect their hard-earned money. To start off, the user explains, when using Bubblemaps, users can choose any crypto project and see all the holders represented as bubbles in a matter of seconds.

In detail, the size of the bubble corresponds to the size of the holder’s wallet, providing insights into the distribution of the token. By examining the top holder wallets, users can identify potential red flags.

As an example, the user mentions the case of $BRUH. They highlight how this particular project showcased absolute havoc to its investor. Presently, the coin is down 97% from its all-time high.

Adding on, the user says by using Bubblemaps, it becomes evident that there are too many connecting wallets, which indicates a high level of risk. Moreover, the fact that the top 10 wallets hold more than 9% of the total supply raises immediate concerns.

Note that the interconnectedness of wallets is a major warning sign according to the user. This is because if any of these large holders decide to sell, it can trigger panic selling among others. Ultimately, it will lead to a significant increase in sell pressure and will cause the token’s value to plummet to zero.

The user once again highlights that by using Bubblemaps and analyzing these key indicators, investors can make informed decisions and avoid falling victim to rugpulls. The tool provides a quick and efficient way to assess the risk associated with a crypto project based on wallet distribution and interconnections.

In conclusion, protecting oneself from rug pulls requires vigilance and the utilization of tools like Bubblemaps. By conducting thorough analysis and identifying potential red flags, investors can mitigate the risks and navigate the crypto space with more confidence.

Remember to always do your own research and exercise caution when investing in cryptocurrencies.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.