How to Avoid Scam Tokens

Why scam tokens are common on Solana

Launchpads like Pump.fun have made it trivial to create a token on Solana. Anyone can spin up a new SPL token in under a minute with no code, no audit, and no cost. That is powerful for innovation, but it also means the vast majority of newly launched tokens are abandoned, malicious, or designed to extract money from buyers. On Solana, thousands of tokens are deployed every day.

Because KingSwap is non-custodial, we cannot protect you from swapping into a bad token. The transaction is yours to sign. This guide explains the practical checks you should run before swapping into any token you have not seen before.

Red flag 1 — Freeze authority enabled

Solana SPL tokens have a freeze authority field. If the creator keeps this enabled, they can freeze any wallet holding the token — including yours. That means you can buy, but you cannot sell. Always check on Solscan that freeze authority is disabled before buying. If it is enabled, walk away.

Red flag 2 — Mint authority enabled

Similarly, if the mint authority is not revoked, the creator can mint unlimited new tokens at any time. This dilutes your holdings and lets them dump infinite supply on the market. A legitimate project almost always revokes mint authority at launch.

Red flag 3 — Liquidity below $5,000

Thin liquidity is the most common rug pull vector. A creator can launch a token, add $1,000 of liquidity, attract buyers, then pull the liquidity and vanish. Before swapping, check the total liquidity on DexScreener or Solscan. Anything below $5,000 is high risk. Below $1,000 is almost certainly a rug.

Red flag 4 — Few holders

A token with fewer than 50 holders is likely a fresh scam with no real community. Legitimate tokens usually have hundreds or thousands of holders within hours of launch. Check holder count on Solscan or Birdeye.

Red flag 5 — Concentrated supply

If the top 10 holders own more than 50% of the supply, a single wallet can dump at any time and crash the price. Check distribution on Solscan. A healthy token has a wide holder base with no single wallet controlling more than a few percent.

Red flag 6 — Fake social presence

Scam tokens often copy the name and logo of a real project and launch with a similar mint. Always check the mint address against the official project's website or Twitter. If the token you see on a DEX has a different mint than the official one, it is fake.

The test swap method

The single most effective safety technique is the test swap: buy a tiny amount (under $5) first, then immediately try to sell it back. If the sell fails or gives back far less than expected, you have identified a honeypot without losing real money. Only after a successful test swap should you scale up.

Tools to check any Solana token

Solscan.io — official Solana block explorer. Check mint authority, freeze authority, holders, transfers.
DexScreener — liquidity, price, volume, chart for any Solana token.
Birdeye — advanced token analytics including holder distribution.
RugCheck.xyz — automated rug pull risk score for Solana tokens.
Honeypot.is — simulates buy and sell transactions to detect honeypots.

Frequently Asked Questions