Three new meme coins with a religious theme have emerged on Uniswap on May 22, making it to the top crypto gainers list on DEXTools. These newly listed meme coins are $GOD, $MARY, and $BABYJESUS. However, each of these coins has a low DEXTscore and shows some warnings under the contract details section of their DEXTools links. Therefore, potential investors should exercise caution when buying these new DEX coins.
Interestingly, Jesus Coin (JESUS), which was launched just last month, is also among the top trending cryptocurrency assets today on CoinMarketCap. This raises a legitimate question – are these top crypto gainers truly safe?
It’s commonly known that a large percentage gain on a decentralized exchange can be a sign of low liquidity rather than real interest from buyers. This is because a lack of sell orders in the order books and a low buying volume can cause a pump in the thousands of percent. At the time of writing, all three new meme coins have a liquidity under $100,000 and a fully diluted market capitalization under $1 million:
– GOD coin: $99k liquidity, $950k market cap
– MARY coin: $65k liquidity, $400k market cap
– Baby Jesus coin: $45k liquidity, $300k market cap
Although experienced traders can profit from new tokens, beginners might suffer as the price can crash just as fast as it rose, resulting in the infamous ‘pump and dump’ chart pattern.
To avoid such risks, DEXTools provides an automatic audit of each token’s smart contracts, which can be helpful when reviewing new Uniswap listings. According to this audit, $GOD token and $BABYJESUS have been flagged as having a blacklist function in their contracts, while $MARY has been flagged as having the ability to modify the maximum amount of transactions or the token position.
These warnings and low liquidity issues do not apply to other popular meme coins, like $PEPE, $COPIUM, $RFD, $SPONGE, and others on DEXTools’ ‘hot pairs’ list. When these more established tokens make the top crypto gainers list, their percentage gains tend to be in two or three figures over a 24-hour period, with rare occurrences of four or five-figure gains.
A recent example is RefundCoin (RFD) which spiked over 1,000% yesterday. It has a liquidity of $14 million and no DEXTools warnings, which makes it a more stable choice for investors.
In conclusion, although religious-themed meme coins like $GOD, $MARY, and $BABYJESUS have gained impressive traction, potential investors should consider the risks associated with low liquidity and the limitations of their contracts before investing.
Source: Cryptonews
