Lost money to a rug pull? Here's the exact checklist I run on every token before buying.
The 5-Point Safety Check
1. Mint Authority
Check: Can the creator make more tokens?
Red flag: Mint authority is NOT null
Impact: Infinite dilution — your tokens become worthless
2. Freeze Authority
Check: Can the creator freeze your wallet?
Red flag: Freeze authority is NOT null
Impact: You literally can't sell
3. Top Holders
Check: Does one wallet hold >30% of supply?
Red flag: High concentration (excluding LP wallets)
Impact: One wallet dumps = price crashes
4. Liquidity
Check: Is LP >10% of market cap?
Red flag: Low liquidity relative to cap
Impact: Can't exit without massive slippage
5. Metadata
Check: Can token name/image be changed?
Red flag: Mutable metadata
Impact: Token can impersonate another project
How to Check
Manual: Solscan.io → paste token address → check account info
Automated: /scan <address> in @solscanitbot — runs all 5 checks instantly, free
Build your own: Token scanner script in DeFi Toolkit (0.3 SOL)
Bonus: Green Flags
- Mint authority revoked ✅
- Freeze authority revoked ✅
- LP tokens burned ✅
- Multiple holders (>100) ✅
- Active trading volume ✅
- Verified on Birdeye/DexScreener ✅
Don't skip the safety check. The 30 seconds it takes can save you hundreds of dollars.
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