Crypto For Dummies: How To Spot Fake Meme Coins

We have started 2025 in a meme coin frenzy, thanks to the 47th US President, Donald J Trump. Just days before his inauguration, the president launched the OFFICIAL $TRUMP meme coin, and the First Lady followed with the $MELANIA meme coin.

The hype drove millions of new users without any prior knowledge of crypto to enter the field. According to a survey, over 42% of the users who bought TRUMP and MELANIA were first-time crypto investors.

Scammers are already taking advantage of this hype. Several scam tokens based on other Trump family members launched and triggered a rug pull. Meme coins can indeed be exciting, but they also attract scams due to their hype-driven nature.

So, if you’re new to the crypto space, here are some simple ways to identify if a new meme coin might be a scam.

Identifying scam meme coins

1. Research the team

Legitimate projects often have transparent teams. Check their social media profiles, LinkedIn pages, or past work. If the team is anonymous or hard to verify, that’s a red flag.

2. Look at the whitepaper or website

Scam projects often have poorly written or overly vague whitepapers and websites. Most tokens don’t have a whitepaper at all. If the goals seem unrealistic or there’s no clear plan for the token, stay cautious.

Also, if a meme coin doesn’t have a website, that’s a red flag to start with. It’s most likely a social media scam. If it does have a website, it’s important to check the domain age. Use Domain Name Age Checker to check how old the meme coin website is.

If it was created a day ago, the developers are probably in a hurry to make as much money as possible – it’s a red flag. If the domain name is old for at least a few months, then it shows that developers have been planning for this launch effectively. So, that builds some credibility.

3. Check the contract code

Use tools like Etherscan or BSCScan to review the smart contract. Look for signs like:

If the creators retain control over the contract, they could change key parameters or even rug pull. Similarly, if the contract allows unlimited minting of tokens, it can inflate supply and crash the value.

Check for transaction fees within the contract. Scammers often embed high fees to drain liquidity. Look at the holder distribution. If a few wallets hold the majority of tokens, it’s a risk. The holders could dump tokens, crashing the price. Here’s how you can do it:

• Find the contract address: Get the token’s smart contract address. It’s usually shared on the project’s website, social media, or in their whitepaper. Be cautious and confirm you’re using the official address.
  

• Visit Etherscan or BSCScan: Go to Etherscan (for Ethereum tokens) or BSCScan (for Binance Smart Chain tokens). Paste the token’s contract address into the search bar.

• Check contract details: On the token page, you’ll see a tab called Contract. Click on it. Look for these things:

• Ownership status:
  • If you see ‘Contract Source Code Verified’ with ‘Ownership Renounced’ or ‘Read as Proxy’ (meaning no one can alter the contract), it’s safer.
  • If ownership isn’t renounced, look for functions like setTax, mintTokens, or disableTrading that the owner can abuse.
• Minting functionality:
  • Look for functions like mint() or generateTokens(). If the owner has the ability to mint unlimited tokens, this is a red flag.
  • Example: A scam project might mint millions of tokens overnight, diluting value.
  • Use the “Read Contract” tab to see existing supply and compare it to what they promised.

• Transaction history: Check the Transactions tab. Look for any unusual movements, like large chunks of tokens being transferred to one wallet (likely the owner’s).

4. Token distribution

Look at the holder distribution. If a few wallets hold the majority of tokens, it’s a risk. The holders could dump tokens, crashing the price. Here are some tolls to check token distribution of a meme coin:

• Etherscan or BSCScan: On the token’s page, click the Holders tab. Look at the top wallets:
• If a wallet holds more than 20% of the tokens, it’s a potential dump risk.
• If the liquidity pool address has a majority, check if liquidity is locked.
• Token Sniffer (tokensniffer.com): Enter the contract address, and it will provide a summary of the token, including distribution and risk analysis.
• Dextools (dextools.io): Enter the token’s contract address to view detailed analytics, including wallet holders and liquidity stats.

5. Liquidity

Verify if liquidity is locked. If the liquidity isn’t locked, the creators can withdraw funds, making the token worthless. Tools like Team.Finance or UniCrypt often show if liquidity is locked.

6. Community and social media

Genuine projects usually have active, engaged communities. Bots or fake followers on platforms like Telegram or Twitter are warning signs. Check the tone of discussions—is it genuine or full of spammy hype?

7. Listings and audits

Even if it’s new, check if the token has been audited by a reputable company like CertiK or PeckShield. Early price listing on platforms like CoinGecko or CoinMarketCap adds credibility but aren’t guarantees.

8. Too-good-to-be-true promises

Be sceptical of projects promising guaranteed returns or insane multipliers like ‘1000x in a week’. Scammers exploit FOMO (fear of missing out).

9. Check for a honeypot

A honeypot scam traps investors by allowing purchases but blocking sales. Use tools like Token Sniffer or Honeypot.is to test if the token is sellable.

How to find new meme coins early?

Follow the social media chatter

Meme coins often gain traction on platforms like:

• Twitter/X: Look for trending hashtags like #NewToken or #MemeCoin.
• Reddit: Subreddits like r/CryptoMoonShots and r/CryptoCurrency often discuss new launches.
• Telegram and Discord: Join groups that focus on new token discoveries. Be cautious of spam or overly hyped claims.

Use token launch platforms

• Many meme coins debut on decentralized launchpads or token sale platforms. Popular ones include:
  • Pinksale (BSC tokens): Lists presales for new tokens.
  • DXSale: A launchpad for various blockchain networks.
  • Unicrypt (now UNCX Network): Known for managing launches and locking liquidity.

3. Scan decentralized exchanges

Meme coins are often first available on decentralized exchanges (DEXs) like:

• PancakeSwap (for BSC tokens).
• Uniswap (for Ethereum-based tokens).
• Raydium (for Solana-based meme coins)

Tools like Dextools or Poocoin can help you track real-time listings and prices.

4. Leverage analytics tools

Use tools designed to spot newly created tokens: Look for tokens with healthy initial liquidity and trading volumes.

• Token Sniffer: Detects recently launched tokens and analyzes their safety.
• BSCScan/Etherscan: Check for recently deployed contracts.
• Dextools: Provides insights into token pairs, volume, and trading activity.

5. Watch for key indicators

• Community growth: Rapidly growing followers on social media or active discussion in Telegram/Discord groups often signal hype.
• Marketing efforts: Check if the team is running campaigns, meme contests, or influencer promotions. Legitimate projects often invest in visibility early.
• Low market cap: Early-stage meme coins typically have low market caps, giving you more room for upside if they succeed.

6. Monitor liquidity and tokenomics

Ensure the token has locked liquidity—this shows the team can’t easily withdraw funds and rug pull. Check the tokenomics:

• How many tokens are in circulation?
• Is there a burning mechanism to reduce supply over time?
• Are there transaction taxes, and how are they allocated?

7. Join new token discovery channels

Some platforms specialize in uncovering meme coins. For example, Coinsniper lists new projects with community voting.

8. Be quick but smart

Meme coins often rise and fall fast. Avoid FOMO (fear of missing out). If it feels too late, it probably is. If you spot one early:

• Invest only what you can afford to lose.
• Use a clear exit strategy (e.g., take profits if the price doubles or triples).

Do not invest what you cannot lose

When investing in meme coins, approach it as a high-risk, high-reward venture and set realistic expectations. Treat these investments as speculative, using only money you can afford to lose without affecting your financial stability.

Diversify your investments across multiple coins rather than betting everything on one. Focus on thorough research: check the token’s liquidity lock, smart contract security, and distribution to avoid scams. Be prepared for extreme volatility, where prices can skyrocket or crash in hours.

Set clear profit-taking and stop-loss strategies to protect your capital. Avoid emotional decisions driven by hype or FOMO. Ultimately, treat meme coin investments as part of your broader financial portfolio, not its foundation.

1. 01.

   Is the TRUMP meme coin a scam?

   

   The OFFICIAL TRUMP meme coin is indeed real and not a scam. This is because the president himself launched and endorsed it. However, there are certain concerns about market manipulation. The tokenomics is very odd, as 80% of the supply is locked by the development team. So, users must remain cautious.

2. 02.

   Which exchange is best for meme coins?

   

   For those new to crypto, it’s always best to use centralized exchanges like Binance, Coinbase, or Kraken for safe trading. However, meme coins often come to centralized exchanges late. So, if you want to be an early investor, you must use decentralized exchanges. The best platform currently available is Raydium or Jupiter, which makes it easy to connect a crypto wallet and start trading quickly.