🔥LP Burnt
One of the biggest things to check before aping into a token is whether the liquidity pool (LP) is safe or if the dev can still rug you.
Let’s break it down, buddy:
💧 What is a Liquidity Pool?
A liquidity pool is the pot of funds that makes trading possible. Without it, you can’t buy or sell a token.
Example:
Let’s say someone launches $HYPERDUMB. To make it tradable, they pair $HYPERDUMB with HYPE (for example, $100 worth) and add both into a liquidity pool.
That pool is what lets you and others swap HYPE for $HYPERDUMB, and vice versa.
🧠 Why Liquidity Pools Are Great
Decentralized Trading – No need for a centralized exchange.
Instant Access – Anyone can buy/sell, anytime.
Smooth Swaps – More liquidity = less slippage.
But—here’s where things get risky...
⚠️ The Risk: Dev-Controlled Liquidity
When a dev sets up a liquidity pool, they get a special token called an LP token (basically ownership of the pool). If they keep that LP token, they can remove all the funds at any time. That’s called a rug pull.
Imagine this: You just bought a bunch of $HYPERDUMB. Then the dev yanks the liquidity pool. Boom! Your tokens are worth nothing. Gone. Bye-bye. You just got rugged, buddy.
🛡️ How to Protect Yourself
✅ Check if the LP is Burnt
If the LP token (ownership of the pool) is burnt, it means no one can ever pull all the liquidity. That’s what you want.
You can check if the LP token was sent to a burn address.
🔍 What a Non-Burnt LP Looks Like:
The dev will hold the full LP supply in their wallet
Translation: They can drain it any time. Stay away unless you like rollercoasters without seatbelts.
💡 Pro Tip:
A burnt LP doesn't guarantee moon, but it does mean the dev can't rug the initial liquidity. It’s one of the first things you should check before buying any memecoin.
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