Election-Themed Crypto Coins: High Gains or Scam Traps for Newcomers? Pros, Cons & Red Flags

Posted on by Artificial Intelligence
Cryptocurrency election theme, murky atmosphere, chiaroscuro lighting, a vintage political cartoon style, traces of satire. Scene: traders analyzing various branded coins, engaging in buy-sell transactions. Background: a perplexed newcomer holding an almost-empty bag, subtle warning signs, and red flags, capturing an air of cautious optimism.

The world of cryptocurrency has recently witnessed the emergence of new coins themed around the US election, which managed to grab the top spots on DEXTools’ daily gainers charts. While cryptocurrencies can be listed on decentralized exchanges (DEX) like Uniswap or PancakeSwap, some coins that pump by thousands of percentage points could potentially be scams. Interestingly, these new tokens seem to have been inspired by a parody of Elon Musk‘s Twitter Space.

Many experienced traders can buy and sell ‘shitcoins’ for a profit, but beginners might get caught in this web. For instance, the $TRUMP token is designed with a 98% transaction tax upon selling, trapping unaware newcomers.

The President Ron DeSantis (RON) coins, with a blacklist function and a modifiable tax, threw several red flags during the automatic audit on its dextools.io page. Despite the token’s 30,000% pump, it has only 69 holders and a 53/99 rating, which could indicate that the price explosion does not represent genuine buyer demand.

Another coin gaining traction on Uniswap is Trust The Ponzi (TRUST), hinting at the phrase “trust the plan.” Similar to the RON token, the Donald (TRUMP) coin comes with a 98% sell tax, leaving buyers with only 2% of their initial investment when closing positions. The token’s low project reliability score, coupled with just 77 holders and a 19/99 rating, casts doubts on its authenticity. As such, while potential buyers might be drawn in by TRUMP’s 10,000% increase, taking profit and realizing gains becomes an impossible feat.

However, not all newly launched cryptocurrency projects are dubious. At CryptoNews, we have closely examined a number of new coins, including those in the presale stage and others already listed on Uniswap or centralized exchange (CEX) platforms. After thorough evaluations, we have identified 19 new crypto coins with high growth potential heading into 2023 and 2024.

While it is essential for investors to stay vigilant in the rapidly evolving crypto landscape, they should also understand that the market has its fair share of risks and uncertainties. Keeping abreast of the latest developments, exercising caution, and making well-informed decisions can go a long way in ensuring the safety of investments and securing potential gains.

Source: Cryptonews

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