PitSafe Research

Last updated: Sep 17th, 2021

Introduction

As an investor you are always on the lookout for the next big cryptocurrency to buy in 2021, that is likely to explode and make you rich. You read all these rags to riches stories, and you absolutely do not want to have crypto FOMO. However, hidden behind few hundred folks who have made fortune, are thousands or millions who have lost money in many crypto scams. As an investor you need to be able to spot and avoid these scam cryptocurrencies. This is even more important for new tokens, which are marketed heavily and being penny cryptocurrency have low barrier to investment. Eventually many of them will get rugpulled or dumped, and the token developers will run away with all the investor money.

PitSafe is an innovative, first of its kind product, which assists you in finding if the BSC / BEP-20 cryptocurrency is legit and safe to invest.

Importance and Challenges of Research

The easiest way to make a fortune out of cryptocurrency is to be an early investor in a promising cryptoproject. To find such early yet promising projects, you need to do alot of analysis and research of token fundamentals. There are infinite number of tokens being released every single day and it becomes exceedingly difficult to get all the information that you need to look at before buying. As a result, you end up relying on the partial information shared by the developers (devs) in their marketing posts or manipulated comments on reddit like forums. The result, you become the victim of a pump and dump cryptocurrency. Not only will you lose your investment on these scam coins, but it also degrades our trust in cryptocurrency and decentralized finance (DeFi).

PitSafe Research provides you not only with an investment strategy for buying cryptocurrency but also makes it viable by automatically getting you all the information you need. This information is reliable, being sourced entirely from blockchain and contracts, nothing submitted by devs or crowdsourced.

How to do Research?

Doing research for BSC tokens is amazingly simple with our PitSafe Research tool.

Step 1: Enter your BSC / BEP-20 token contract address in PitSafe Research tool.

Search in PitSafe Research

Step 2: Once the token contract address has been filled in, the searching automatically starts. In case you see some error, confirm the token address by searching in BscScan.

Search in PitSafe Research

Step 3: Once the research is completed by the tool, you would see results like below.

Results in PitSafe Research

What are the results?

Now let's look at each of these metrics one by one:

Token Price

The Token Price displays you how much one token is worth in USDT. PitSafe should be able to retrieve an price. If PitSafe is not able to retrieve a price per token it means that there is no liquidity on PancakeSwap.

If PitSafe is able to retrieve a price per token from PancakeSwap it will show something like this:

Results in PitSafe Research

If PitSafe is not able to retrieve a price it will show something like this:

Results in PitSafe Research

Token Ownership

This tells whether there is an owner with special privileges over the token or it has been renounced by assigning contract ownership to a burn address. Keep in mind while renouncing ownership is a good practice, token developers (devs) can still hardcode privileges into their token contract.

If ownership is renounced, you should see:

Results in PitSafe Research

If ownership is not renounced, you should see:

Results in PitSafe Research

Token Marketcap

The Token Marketcap displays how much the the total of all circulating tokens commbined is worth. Token marketcap is calculated by multiplying the circulating supply by the token price on PancakeSwap.

  • Token Marketcap = Circulating Supply * Price per token on PancakeSwap
  • Circulating Supply = Total Supply - Burned Tokens - Tokens to be mint
  • Token Marketcap = (Total Supply - Burned Tokens - Tokens to be mint) * Price per token on PancakeSwap

If PitSafe is able to obtain the circulating supply of the token and also the price per token on PancakeSwap it will be displayed like this:

Results in PitSafe Research

If PitSafe is not able to either get the circulating supply of the token or the price per token on PancakeSwap it will be displayed like this:

Results in PitSafe Research

Token Burn

This is the percentage reduction in available token supply by transfer to a burn address (typically 0x00..0 or 0x00..dead addresses which have no keys and cannot swap tokens). When devs burn tokens (30-50% is good), they reduce their share and minimize the likelihood of a dump.

If at least 5% of tokens have been burned, you would see something like:

Results in PitSafe Research

Otherwise:

Results in PitSafe Research

Token Contract

The Token Contract section looks into BSCScan if the contract is submitted to their platform. Most of the tokens decide to "decompile" the contract so that investors can take a look inside the contract for malicious code. Some coins decide not to "decompile" the contract which means that investors can not take a look inside the contract. Any token that does not have the contract decompiled should be considered as a risk.

If the contract is submitted and decompiled to BSCScan it will display like this:

Results in PitSafe Research

If the contract is not submitted or decompiled to BSCScan it will display like this:

Results in PitSafe Research

Token Holders

The Token Holders section shows you the amount of holder the token has. If a wallet contains more than one unit of the token address inserted it will be counted as a holder.

Results in PitSafe Research

If you do not have the required dollar value of $PIT in your wallet, you will see something like this:

Results in PitSafe Research

If you want to see the Token Holders section you need to have atleast $100 worth of $PIT in the wallet you are connected with. You can buy more $PIT on PitSwap or on PancakeSwap V1.

The Biggest Shareholder

The Biggest Shareholder shows you how much coins the biggest wallet address is holding. The biggest shareholder excludes; liquidity pools, 0x000...0000, 0x000...001 & 0x000...dead. This means that the wallet belongs to a person or to the team of the token.

If the biggest shareholder holds less than 5% of the total supply, it is considered safe and displayed like this:

Results in PitSafe Research

If the biggest shareholder holds more than 5% of the toal supply it will be considered as unsafe and it will be displayed like this:

Results in PitSafe Research

If you do not have the required dollar value of $PIT in your wallet, you will see something like this:

Results in PitSafe Research

If you want to see the Biggest Shareholder section you need to have atleast $100 worth of $PIT in the wallet you are connected with. You can buy more $PIT on PitSwap or on PancakeSwap V1.

All Liquidity Pool Value

The value of liquidity pools (LP) in USD. It is an important metric for a newly released coin. To facilitate trading over an exchange like PancakeSwap, devs have to create a liquidity pool (LP). Since LPs are created by pooling in BNB or other tokens of value, it represents an investment and commitment from the devs. A 100K worth of BNB tokens thrown in to create an LP pool is a good sign.

If a liquidity pool with at least $250K worth or more (considering only BNB/BUSD value) exists, you should see something like below. Please note the locked value and links to the LP token on BscScan are provided.

Results in PitSafe Research

If a liquidity pool with at least $50K worth up untill $250k worth (considering only BNB/BUSD value) exists, you should see something like below. Please note the locked value and links to the LP token on BscScan are provided.

Results in PitSafe Research

If a liquidity pool with atleast $0 up untill $50k worth (considering only BNB/BUSD value) exists, you should see something like below. Please note the locked value and links to the LP token on BscScan are provided.

Results in PitSafe Research

If you do not have the required dollar value of $PIT in your wallet, you will see something like this:

Results in PitSafe Research

If you want to see the Liquidity Pool Value section you need to have atleast $100 worth of $PIT in the wallet you are connected with. You can buy more $PIT on PitSwap or on PancakeSwap V1.

Main Liquidity Pool Token Allocation

The percentage of "tradable" token supply allocated to the liquidity pools. This is easily the most overlooked metric for a new token. After releasing a token, devs own the entire supply. They might burn some, airdrop or presale few. However, they would typically still own most of the "tradable" supply. To improve optics, they may distribute it over multiple wallets with no whale visible in holders list. If a high percentage of "tradable" token supply is allocated to LPs (which should be locked btw, more on that later), devs share is reduced and they cannot benefit from dumping their share. Otherwise, only with a small appreciation in the token price, they can benefit by dumping their share. For an intuitive idea, if devs own 90% "tradable" supply of a token and have created a high value LP with 10% supply, when devs dump all their share they will get back 90% (actually more than that) of their LP investments even if no one else ever traded their tokens. And when they manage to get few people to buy and increase the token prices, devs can make hefty profits even with locked LP. For newly released tokens, LP Token allocation percentage should be as high as possible, yes 100% is ideal but a 20ish % number is generally good indicator.

If token allocation to liquidity pool is more than 20% you would see:

Results in PitSafe Research

If you do not have the required dollar value of $PIT in your wallet, you will see something like this:

Results in PitSafe Research

If you want to see the Main Liquidity Pool Token Allocation section you need to have atleast $250 worth of $PIT in the wallet you are connected with. You can buy more $PIT on PitSwap or on PancakeSwap V1.

Token Mint Function

The Token Mint Function searches inside of the smart contract if the contract owner is able to create tokens out of thin air. A Mint function in a contract means that the developer can increase the total supply by any number he wants. Any token with a mint function will be red flagged and needs extra research before you consider investing in the token.

Results in PitSafe Research

If the contract contains a mint function, you would see this:

Results in PitSafe Research

If you do not have the required dollar value of $PIT in your wallet, you will see something like this:

Results in PitSafe Research

If you want to see the Token Mint Function section you need to have atleast $250 worth of $PIT in the wallet you are connected with. You can buy more $PIT on PitSwap or on PancakeSwap V1.