01. Honeypot & Rugpull Identifiers

Honeypot

Honeypots are smart contracts that appear to have an obvious flaw in their design, which allows an arbitrary user to withdraw and/or drain funds from the contract at a moment’s notice, thus diminishing the token price. To identify a honeypot, the SHIT Checker uses several powerful techniques to verify smart contract function with crypto standards. These techniques include the examination of taxes, and other decentralized exchange regulations.

• If the contract is a honeypot, you will see the text: THE TOKEN IS A HONEYPOT - You will also see a hyperlink with additional information as to why this contract is a honeypot

• If the contract is not a honeypot, you will see the text:

  Does not seem to be a honeypot. This can change at any time. Always keep an eye on the behavior of the Smart Contract when selling/swapping tokens.

Rugpull

A Rugpull is a crypto scam when a developer attracts investors to a new cryptocurrency project, then pulls out before the project is fully built. This leaves the investors with a worthless currency. To help identify a rugpull, The SHIT Checker utilizes pivot elements in a series of sophisticated calculations against the smart contract’s token. These pivot elements can include but are not limited to; examining different holders of the token, the variation of the token’s value against different tokens, and verification of the circulation supply. The result of these calculations can pinpoint if one, or more, of the holders could somehow manipulate the liquidity of the contract and decrease the price of the token dramatically. The SHIT Checker uses comparative analysis matrices over time to check the current data against the data the AI has collected in the past for the token. This functionality also monitors the owner’s behavior and the varying percentage of the token they hold, which could qualify it as a honeypot scenario as well.

• If the token contract is identified as a potential rugpull, you will see an explanation for why this was labeled as a Rugpull.

• If the token contract and tokenomics do not show potential for rugpull, you will see the message: It doesn't contains the potential for rugpull.

Example 1: A token could be considered a potential rugpull if it contains an address that has a large percentage (30%+) of the total supply, combined with a low Liquidity of its total supply.

Example 2: A token could be considered a rugpull if only a few addresses own such large percentages (50-70%) that the majority of other wallets cannot even accrue enough percentages to balance them out. These large addresses can drain the liquidity, so it has a high potential of being rugull.