Thread by @RobotDefi

🚨WARNING: DO NOT TRADE BSC TOKENS LESS THAN 24HRS OLD🚨

I'm seeing influencers teaching this "degen trading strategy" but it's really just a way to lose your money. 98%+ of these tokens are scam tokens!!

Here's a quick thread.

🧵/1

First, the reason I'm posting this is because I've seen multiple "influencers" push this as a strategy, claiming they 2x, 3x, 10x their money in "less than X minutes"

And I know that's total bullsh!t

🧵/2

How do I know?

Because I legit spent nearly 2 months FULL TIME building a strategy around this only to discover it can't be done.

Let me explain...

🧵/3

When I jumped into #DeFi I did it with both feet, all-or-nothing style. I'm also a data geek, so I look for patterns I can exploit.

One pattern I noticed was new tokens always get a big pump. That's a predictable pattern I could really profit from.

🧵/4

Then I learned that almost all of them are honeypots.

For anyone unaware, a honeypot is a token you CAN'T SELL!

And they are rampant in new tokens. That's why I suggest only filtering for tokens at least a month old. 98% of the scams are gone by then.

🧵/5

But influencers are teaching a method to filter for tokens less than 24 hours on Dexscreener for a quick flip and easy way to 5x your money.

But it just won't work out that way...

🧵/6

First, let's look at some charts. After I saw someone post their filter method I immediately entered them into Dexscreener and started looking at the tokens.

As you can see the majority of them are on a downtrend. This isn't going to 10x your money.

🧵/7

Ok, well the "advice" is to get in early and get those green only candles.

Except that those are probably honeypots. There's a reason why all those new tokens have such a massive pump. Nobody can sell them.

🧵/8

So then the advice is to just trade $1 at first.
Did you know that a lot of these contracts can put a cap on the amount of your trade? Meaning, they'll allow a $1 or $5 sell, but not anything greater than that.

This is how they trick trading bots (and honeypot checkers).

🧵/9

Then the advice is, well make sure you check some sell transactions manually.

Except you'll see a bunch of sell txns. Usually for less than $20. But if you really want to know you need to wait for some significant sells.

🧵/10

Unfortunately by the time those start coming in, it's too late and the trend is downward.

OK, so just run it through TokenSniffer, right?

Except many contracts less than 24hrs old won't even register in TokenSniffer yet.

🧵/11

And even the ones that do, scammers learn new ways to write contracts every month that get past honeypot checkers.

They do fake renounces and retain the ability to turn trading off, or adjust fees.

🧵/12

Also, scammers use a bunch of wallets to make sells to make it look natural.

The point is, you cannot know with full confidence, and you will find out the hard way if you try to trade like this.

🧵/13

Bottom line, anyone pushing an "easy way to 10x your money in less than an hour" or whatever is only trying to gain followers.

This is not a trading strategy. It's just stupid.

🧵/14

And no, I am not saying ALL tokens that are less than 24hrs old are scams.

If you find a project that you've done your research on that hasn't launched yet, then you can proceed with confidence.

But, screening for new tokens on BSC that you've never heard of...bad idea.

🧵/15

Bottom line, you can't fully trust brand new sh!tcoins with no history.
And by the time they have some history, it's likely too late.

And technical indicators won't work either, since they rely on a trading history.

🧵/16

I know I'm probably making enemies with this post.
But I don't care.

My responsibility is to the greater #CT community and seeing clout-chasers take advantage of you for followers really upsets me.

PLEASE be careful you you take "NFA" from.

🧵/end rant