The platform called SmartContracts Tools has a token generator dApp to generate a new Ethereum or BNB crypto token within a minute.
The dApp resides on the Ethereum, BSC and Polygon networks and uses unique smart contracts to help users create their own tokens.
How to Create a New Token Using SmartContracts
You will need to connect a MetaMask wallet with enough ETH, MATIC, or BNB in order for the platform to pay for contract deployments to launch tokens. Tokens can have optional features such as supply caps, deflationary properties, and the ability to be burned or mined.
The user must specify the token type and the blockchain on which it will be deployed. They can choose the ERC20 token type for Ethereum and Polygon or BEP20 for Binance Smart Chain.
If the user selects Ethereum, they can deploy the token to the Mainnet, Goerly or Sepulia testnets.
The user will also have to enter the desired name and symbol of the token.
They can choose the initial supply of tokens and whether it will be a fixed, unlimited or limited supply. Additionally, they can choose who will have access to the token. If a user has proprietary access, they can start and end the mining process of the token or set its burn rate, if applicable. A token can also have a specific admin or miner role that its owner can use.
After filling all the fields correctly, you can click “Create Token”.
Next, you will have created a usable ERC20 token whose smart contract code has been verified.
At press time, the Token Generator app generated over 30,000 custom tokens.
Tools like Token Generator make it easy for scammers to create new tokens and register them on decentralized exchanges like Uniswap.
Decentralized exchanges allow anyone to create a new market smart contract that can hold funds and control how they are used. The DEX automates the market for them.
Users can deposit a newly created token with well-known tokens such as ETH in a special type of contract called the Perpetual Product AMM. The Continuous Product AMM ensures that the product of the number of tokens in the liquidity pool is constant. If a user deposits 10 NEWTOKEN and 10 ETH, the stablecoin is 100. If someone wants to buy 5 NEWTOKEN, there are 5 NEWTOKEN left in the pool. In order to maintain a consistent product, AMM will now quote 2 ETH per NEWTOKEN to the buyer. The more people buy NEWTOKEN, the more expensive it becomes. When the price is high enough, the scammer will take NEWTOKEN out of the liquidity pool and disappear.
Well-known scams in recent history include the Anymoon scam, a earnings game that cost investors $6.3 million. It revolves around investors optimizing non-fungible tokens like Pokemon. The company had promised dividends to NFT holders but disappeared with $6.3 million. The founders used a well-known scammer, Jake Paul, to promote the project. Azuki NFT founder Zagabond was accused of scams after profiting from three failed NFT projects.
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Many scammers take advantage of the fear of losing an investor. They typically use social media feeds and marketing bots to employ an exciting marketing program for new tokens. They will also impersonate influential people in the crypto space to improve their pitch. Such people include noted bitcoin bull Michael Sayler, Ethereum co-founder Vitalik Buterin, and Ripple CEO Brad Garlinghouse.
But it is always best to thoroughly research a token, its founders, history and whitepaper before investing. The existence of a project roadmap is a good indicator that the project will be around for a while. If you find a new token on a centralized exchange, that is a good sign. These exchanges usually review any token or coin thoroughly before listing it. Furthermore, any valid token or coin usually has a significant amount of money in the network.
Companies like Rag Pull Finder and RagDoc also help weed out fake crypto schemes.
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