12 Feb 2025

light mode

TokenSniffer: Automated Scam Detection

TokenSniffer: Automated Scam Detection

TokenSniffer serves as a tool for users, enabling them to analyze and keep track of tokens that have been newly introduced into various decentralized networks.

On this page

The crypto market has been gripped by a wave of ‘meme coin' craze in recent weeks, causing concern among industry players. Fueled by FOMO, both average traders and major players are getting in on the act, often targeting tokens that have no established reputation. This frenzy has also led to the resurgence of the notorious Pump&Dump scheme.

Whether you're a novice trader or an overwhelmed investor faced with a plethora of new tokens, it is now significantly easier to identify potential scams before making a financial commitment

To address this need, Solidus Labs has introduced its TokenSniffer service, designed precisely for this purpose.

How does the TokenSniffer scanner work?

TokenSniffer operates by dissecting the code of a token's smart contract. This allows it to expose potential security weaknesses and flag up potentially fraudulent projects from the get-go.

To verify whether a cryptocurrency is a scam, all you need to do is enter the token's contract address into the search bar on the service's website. TokenSniffer will then scrutinize the smart contract and provide you with an in-depth breakdown of the token, including details of its liquidity, price trends, and security rating. This analysis hinges on whether certain security features are embedded within the smart contract, such as defenses against bot activity and protective measures against theft.

The scanner will reveal several metrics in an accessible visual format:

  1. Whether this token is truly up for sale or it's just a fraudulent bait-and-switch.
  2. The transaction fees applied to both buying and selling.
  3. The status of the contract's source verification.
  4. The amount of circulating tokens held within the coin creator's wallet. Any quantity above 5% is considered critical, making the project appear centralized and prone to manipulation.
  5. Whether the token has adequate liquidity.
  6. The number of tokens that have been burned or locked up.

Analysis of meme coin ELON. Source: tokensniffer.com

Analysis of meme coin ELON. Source: tokensniffer.com

Fraud risk is measured on a 100-point scale. If a project racks up less than 50 points during the contract scan, it might be wise to preserve your funds for a more dependable token.

Pros and Cons of the TokenSniffer Service

Solidus Labs is no newcomer to the digital market scene. It has carved out a niche for itself with Web3 solutions to combat cyber attacks and works alongside regulators in the fight against money laundering through smart contracts. Given that its scanners are trusted tools not just for major fintech companies but also for financial authorities, TokenSniffer's analysis is something you can rely on.

TokenSniffer's primary aim is to flag potentially fraudulent tokens to avoid investments falling into them. This can be a real game-changer for investors who are new to the crypto space or who don't have the technical expertise needed to independently evaluate the security of a smart contract.

TokenSniffer also offers users the advantage of real-time information on newly created tokens. This serves as a valuable tool for savvy market players, helping them spot promising investment opportunities at their earliest stages.

TokenSniffer can prove beneficial not only to traders and investors but to developers as well. They can utilize this service to assess the security of their smart contracts and implement necessary improvements.

However, it is important to note that TokenSniffer is not flawless. It doesn't detect every potential vulnerability. For instance, it cannot monitor a project's social interactions. 

Therefore, the information provided by TokenSniffer should be seen as a starting point for further individual investigation, commonly referred to as “Do Your Own Research” (DYOR). For more detailed insights into the process of verifying a cryptocurrency project, we invite you to read our dedicated article

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author

Latest News

MORE
OpenSea Foundation Mystery: Coincidence or Cover-Up?

OpenSea Foundation Mystery: Coincidence or Cover-Up?

NFT marketplace OpenSea has attracted crypto Twitter (X)’s attention with a token airdrop and KYC uncertainties.

11 Feb 2025
Why Crypto Is Down: How Trump’s Policies Spark Market Panic

Why Crypto Is Down: How Trump’s Policies Spark Market Panic

Despite the crypto market showing signs of recovery from its early February drop, prices are still down compared to record highs hit during President Donald Trump’s inauguration on January 20.

11 Feb 2025
Arthur Hayes Calls for $YE Memecoin as Kanye Sparks Controversy

Arthur Hayes Calls for $YE Memecoin as Kanye Sparks Controversy

In a recent X post, trader and BitMEX co-founder Arthur Hayes called for the launch of a $YE memecoin.

11 Feb 2025
GTA 6 Rumored to Feature Crypto Payments and Play-to-Earn Model

GTA 6 Rumored to Feature Crypto Payments and Play-to-Earn Model

The internet is buzzing once again with speculation that Grand Theft Auto VI (GTA 6) might introduce cryptocurrency payments and implement Play-to-Earn (P2E) mechanics.

10 Feb 2025

Latest News Alt

MORE
Weekly Analysis of BTC, ETH, and the Stock Market (Feb 3, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Feb 3, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

03 Feb 2025
Weekly Analysis of BTC, ETH, and the Stock Market (Jan 27, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Jan 27, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

27 Jan 2025
Weekly Analysis of BTC, ETH, and the Stock Market (Jan 13, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Jan 13, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

13 Jan 2025

Might Be Interesting

MORE
From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

Trump’s meme coin isn’t an outlier—it’s part of a broader trend. Back in 2021, celebrities were minting NFTs, and by 2024, they had moved on to personal token launches. The connection between fame and crypto has been growing for years, even if many failed to see it.

11 Feb 2025
Which Macroeconomic Factors Make Crypto Rise or Fall? 

Which Macroeconomic Factors Make Crypto Rise or Fall? 

It happens when you check the market and crypto prices are up or down for no obvious reason. Then you do some research and find out that there are actually reasons outside the crypto space.

11 Feb 2025
How Blockchain Helps Combat Disinformation

How Blockchain Helps Combat Disinformation

Fake news has become a global issue, shaping public opinion, fueling social tensions, and even influencing political decisions. With the rise of social media, the spread of misinformation has accelerated, making it increasingly difficult to regulate. However, blockchain technology offers a promising solution in the fight against fake news.

07 Feb 2025
Trading Psychology: How to Avoid Falling Victim to Your Own Biases

Trading Psychology: How to Avoid Falling Victim to Your Own Biases

The most successful traders aren’t always the smartest. More often, those who excel are the ones who understand psychological traps, manage their emotions, and maintain rationality under pressure.

03 Feb 2025
Liquidity Pools — The Engine Driving DeFi

Liquidity Pools — The Engine Driving DeFi

Liquidity pools fuel DeFi by enabling instant token swaps, but what exactly are they? These crowdsourced reserves make decentralized trading possible—but they also come with risks. Here’s what you need to know before diving in.

31 Jan 2025
Bitcoin Name Service — Making Web3 Addresses Easier to Read

Bitcoin Name Service — Making Web3 Addresses Easier to Read

As the Bitcoin blockchain evolves, new opportunities are emerging for users to interact with DEX technologies. One of the major advancements is the Bitcoin Name Service (BNS)—a protocol that replaces complex web3 addresses with names that are easy for humans to understand.

29 Jan 2025

Opinions

Vitalik Buterin Discusses AI’s Use in Article Writing

Vitalik Buterin Discusses AI’s Use in Article Writing

Ethereum co-founder Vitalik Buterin started a discussion on X about using AI in article writing, and he’s not a fan.

11 Feb 2025
Super Bowl Bets Under Fire: CFTC Probes Kalshi and Crypto.com

Super Bowl Bets Under Fire: CFTC Probes Kalshi and Crypto.com

The Super Bowl, the largest sporting event in the US, has more to it than just the competition. The exciting show and, of course, commercials and bets are a big part of it, too. The winner will become known as early as tomorrow. Not everything always goes smoothly, though.

08 Feb 2025
MORE

Interviews

«Mass Adoption Isn’t About Tech – It’s About Perception». Bitmedia Founder Matvii Diadkov – About RWA, Web3, And Marketing

«Mass Adoption Isn’t About Tech – It’s About Perception». Bitmedia Founder Matvii Diadkov – About RWA, Web3, And Marketing

Matvii Diadkov, founder of Bitmedia, shared with us in an exclusive interview his expert insights on Web3 adoption, impact of GameFi and community-centering tendencies in the market.

11 Feb 2025
“Satoshi is CIA”: Swedish crypto bro opens up about his Bitcoin journey

“Satoshi is CIA”: Swedish crypto bro opens up about his Bitcoin journey

The first crypto craze took place almost a decade ago. Overnight, many people found out about Bitcoin and its underlying technology, blockchain.

31 Jan 2025
MORE