A SIMPLE USER GUIDE OF TOKEN SECURITY DETECTION FUNCTION ON TOKENPOCKET
Cryptocurrency trading has taken a new shape globally with traders opting for Decentralized Exchange (DEX) over Centralized Exchange (CEX) — because of the self-custodial feature the former affords users.
DEXes allow people to control their token deposit, use, and withdrawal without external institutional and government interference and most importantly, fulfill one of the objectives for the creation of cryptocurrency — to allow for a decentralized, anonymous use and custody of money domestically and internationally.
The negative implication of DEX is that scammers have now leveraged on its decentralization and anonymity to scam people. Oftentimes, an individual or a team may design fake airdrop and giveaway tokens and issue to traders who may be required to scan and grant permission to their wallets to receive the token.
The need to protect our users necessitated the creation of the Token Security Detection Function. This is a new tool in our platform that allows users to check the security of tokens before opting to buy them. The newly launched token detection tool in collaboration with GoPlus will assist to eliminate crypto scams.
Now, the common forms of the crypto scams were creatively addressed by the Token Security Detection Function, to amongst other things verify token addresses and prevent other harmful practices. In doing this, the newly introduced function combines a number of tools to achieve an optimum result. Here is a brief rundown on the security detection components:
➢ Verify token airdrop scam: the security function is built to control and detect fake airdrops and giveaways that may contain malicious links or grant permission into a user’s wallet.
➢ Verify fake token scam: the honeypot token tool detects and shows tokens that cannot be sold when they are bought.
➢ Verify that the contract is open source: the crypto community hopes to achieve an open source regime to ensure full decentralization of transactions and public accessibility of data. The security function checks the open source status of a token to ensure the creators have a verified token address.
➢ Verify token security: the function uses a proxy contract and additional issuance tools to verify the token security. Where the additional function tool detects external links or contracts bound to the token contract, it means that the token is not safe for buying. On the proxy contract tool, the contract may have additional extensions that have other issuance functions — and this is considered to be dangerous.
➢ Verify that the token can be sold: the tool combines the blacklist and ant-whale tools to ensure that the tokens can be sold in the open market. Where a token appears under the anti-whale function, it means that there is a tendency for a person or single entity to buy the token in bulk and maintain full control over the price. The anti-whale function prevents this. The blacklist function detects, collates, and shows addresses that cannot sell tokens. It helps to prevent fake token scams.
To use the security token detection function, follow these simple step-by-step guides:
1. Open TokenPocket on your mobile phone or personal computer and select any token of your choice.
2. Next, click on the “Token Details” displayed at the top right side of your screen.
3. After clicking on the token detail, the token profile information will appear showing the project, the contract address, official website, and social media handles. The security information which allows you to check the token security details usually shows dangerous items and risky items — collectively categorized as danger warnings and security warnings. The latter is considered to be more dangerous.
4. To proceed further, click on the “View more security details” to see the token creator’s address and the token contract address, including the security report.
5. On the interface that displays after clicking view security detail, click on the button at the top left side of your screen to select the “logo” representing the blockchain where the token was built.
Please note: that our platform currently supports Arbitrum, Cronos, Polygon, Avalanche, Ethereum, Heco, OKC, Fantom, Harmony, and BSC.
6. After selecting the blockchain, add the token contract address you want to verify and click on “check”.
7. Finally, the security information of the token will display after clicking check.
Also note: that you need to get familiar with the following terms on the token security that displays after clicking “check”
1. Proxy contract: this tool helps to show whether or not a contract has been bound into the token contract, to prevent them from extending the normal token function to malicious objectives.
2. Honeypot token: this tool tests the token to find that a token is not worthless — a worthless token cannot be resold when it is bought.
3. Whitelist function: this tool shows whether an address was whitelisted to buy a token. Whitelist means that “you are selected by the creators to buy the token”.
4. Anti-whale function: prevents whales from buying the bulk of the token to gain significant control over the token exchange price.
5. Blacklist function: where an address is marked in the blacklist section, it will not be capable of reselling once it buys the token.
6. Additional issuance function: it prevents the binding of other functions into the token contract that may lead to scams.
In conclusion, since these new token security detection functions have been introduced, TokenPocket users can verify the token contract and get away from the fake token scam.