Farming with the Marketing/Development Wallet
Again, I'm writing about my favorite topic, SCAMS (In Crypto).
I write about Scams so that my research can help people from getting cheated of their hard-earned money.
So today we will talk about the scam which normally goes undetected.
One of the undetectable ways of scamming is by farming with the marketing/development wallet.
These scams happen with newer tokens and mostly small investors.
It starts normally by creating a token, a website, a telegram channel and a clean contract with a buy and sell tax.
A clean contract, which when checked, should show it’s not a honeypot, owner team does not own more than 5% tokens, whatever small liquidity is there is locked for a long time, sometimes ownership is renounced, buy and sell tax and are not very high, contract cannot be changed, non mintable, contract verified etc.
The website will have a promise of some utility, a roadmap promising listings and marketing in the near future, phase wise.
These scammers have no intention of doing any marketing nor of creating any utility. But in their social media groups they keep hyping with the about the unique utility under construction with the regular and most common lines, "Ape in while the MC is low", "You are in too early", "Buy the dip", "This is the best community ever".
After a couple of days, when they have had some decent amount of Buys, they deliberately keep quiet for a bit...some people sense something is not right and sell their tokens.
When the sells cool down, team comes back with some more hype. Again, people start buying.
Keep in mind, the team is not selling their tokens nor doing anything which can be called a scam that you may catch on to. They are just quiet for a bit which leads to the selloffs. Then they come back and hype the token again.
So no scam as such is taking place here?
No wait...there is a scam happening here.
There is a tax involved with every buy and sell (a very common thing) which is divided between Liquidity and Marketing/development.
Investors are more than willing to pay a certain amount of tax for Marketing and Development. Afterall Marketing and Development is what is going to make them good money.
The scammers create their contract in such a way that with every buy (and sell) the Marketing and Development wallets keeps filling up (again nothing new) but when people sell their tokens, the Marketing/Development wallet sells too. There is one transaction hash but two transactions are taking place in it.
Normally this is overlooked by most of the investors but when some people notice this and question the 2 sells in every sell contract, the reply is very honest… “The Second one is the marketing wallet”. People check the wallet and it really is the marketing/Development wallet. The investors are satisfied with the answer.
But somehow no one questions why the marketing/Development wallet is selling. And if, in a rare scenario, anyone does ask, the answer is, “we are planning some huge Marketing strategies or a new high-profile Dev is added to the team and his name can’t be disclosed due to his agreement with the previous coin he was involved with. Will keep you guys posted”.
This creates another round of hype resulting in more buys.
In this scam, the team (or maybe just one individual with may alternate IDs) just wants buys and sells. With each buy and sell the marketing/development wallet keeps increasing and with each sell the Marketing wallet tokens sells and gives them the money.
This can go on till the investors get tired of waiting and with time, most of the investors sell their tokens and soon the token dies off.
The team then may or may not pull out the little balance liquidity once it's unlocked. It’s too small an amount. And until they don’t pull the liquidity, they are not called scammers. Eventually the token dies off. People feel the Team gave up, or had used up all the funds for marketing and/or development and can no more pay the Devs for future development.
No one cares or bothers any more. People have written off their losses feeling, “This token had potential. It’s sad that the token died”.
But they have not caught the scam.
You think the scammer is going to keep quiet after just one scam?
He is a farmer...farming crypto tokens and taking away your hard earned money.
Next time you see 2 sells in one Transaction, it mostly is your Red Flag.
May not apply to all the tokens but in my experience, it has applied to all such contracts as far as I remember.
The reason I write about scams is because I want people to be careful and not fall for them.
Also, please do your own research. (Writing this has become mandatory in Crypto…lol)
Not Financial Advice
Stay Safe Stay Happy.
