The ever-growing number of tokens in the crypto world has spurred a demand for tools enabling traders and investors to identify potential scam tokens.
Token Sniffer and DEXTools io are two popular platforms for a brief contract audit, often referred to as a "sniff test." While security experts recommend conducting a comprehensive evaluation of a cryptocurrency to detect signs of a scam token before engaging in trading or investments, an easy tool can offer insights into the potential for vulnerabilities.
It is necessary to note that both Token Sniffer and DEXTools carry inherent risks and should be used with caution. This article illustrates the use of these platforms through the evaluation of the controversial PSYOP coin, issued by crypto influencer Ben.eth.
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The term "sniff test" is commonly linked to a fluoroscopy sniff test, which offers a swift, real-time view of excursion or diaphragmatic motor function. In the context of Web3, it typically refers to a rapid assessment of a cryptocurrency project, crypto exchange, or investment opportunity.
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Token Sniffer is a platform that aims "to make DEX trading safer from malicious contracts, exit scams (&'rug pulls&'), and hacks."
Token Sniffer claims to provide its users with the functionality "to scan contracts for known scams, compute helpful contract or token metrics, and maintain a list of scams and hacks." The tool can also be used for discovering the newest tokens.
For regular users, Token Sniffer is offered for free.
At the time of publication, it stated that it was actively monitoring 2,997,775 tokens and 371,901 scams.
To find a specific token, you can insert either its name or address into the search bar. Using the address search option might be preferable since some tokens share very similar names.
When you initiate the search, you will see a comprehensive list of information. At the top of the results, you will find links to Etherscan, DEX Screener, GeckoTerminal, and DEXTools. Following this, you will find the precise date and time of the contract&'s deployment, such as "19 May 2023 00:08:11 GMT" for the PSYOP coin.
For additional context, Token Sniffer also calculates the number of days the project has existed. In the case of PSYOP, it had been active for over 140 days at the time of publication. You can use quick buttons to check transactions via Etherscan and review a bubble map, which will be discussed further in the article. Additionally, you can examine the contract code directly on the platform.
Token Sniffer assigns its own audit score to a token, which, as per the platform, serves as a measure of how well the token adheres to safety criteria. However, it is important to exercise caution and refrain from relying solely on this metric. The platform emphasizes that the score is derived from automated scanners and may not always be entirely accurate. Users should avoid making financial decisions based solely on this score and should instead consider other relevant factors.
Additionally, Token Sniffer warns that even a high score does not guarantee that a token is not a fraud. The score is recalculated every ten minutes, and in the case of PSYOP, it had 0 out of 100 points.
Token Sniffer leverages data from another tool, honeypot.is, designed to detect honeypot tokens, a type of fraudulent scheme often associated with rug pulls, where malicious actors lure potential investors into depositing funds. Such deposits can be withdrawn only by the owner.
According to information from honeypot.is, at the time of the publication, PSYOP was not classified as a honeypot token. The platform also indicated that the token had 0% buy and sell fees.
While Token Sniffer claims the contract source was verified, it also states that the ownership "was renounced or source does not contain an owner contract."
The results of the analysis also say that "the creator is not authorized for special permission."
The results of the holder analysis offered by Token Sniffer for PSYOP present a somewhat ambiguous picture. On one hand, the presence of only 0.06% of the circulating token supply labeled with a green tick can be viewed as a positive sign for potential investors. On the other hand, the analysis reveals that all other holders possess less than 5% of the circulating token supply, ultimately giving the creator greater influence over the token&'s price.
Token Sniffer gives users quick access to information on token holders supplied by Etherscan. According to this data, Ben.eth owned 98.09% of the entire token supply at the time of publication, while none of the other token holders owned even half a percent of the circulating tokens.
The final section of the report offered by Token Sniffer is the liquidity analysis.
According to the platform&'s assessment, the token lacked sufficient liquidity at the time of publication, potentially leading to complications during swapping. The platform provided data on the PSYOP liquidity pool and holders on Uniswap v2 and SushiSwap. At the time of publication, Token Sniffer did not support Uniswap v3, although its team had plans to incorporate it "in the near future."
Based on the low liquidity of the token, the platform also suggested that this could be an indication of "a low-quality token."
As previously mentioned, Token Sniffer also offers a tool for generating a bubble map, which serves to "visualize token transfers between the top 100 holders and other wallets." This map employs distinct colors to distinguish various types of addresses, with the creator&'s address represented in orange, burn addresses in red, exchange addresses in cyan, and other holder addresses in blue (contract holders are not displayed).
To view the address and ownership shares, users can hover over the respective bubbles on the map. Additionally, more detailed information about a particular address can be accessed via the Explorer feature.
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Finding comprehensive independent customer reviews or opinions about Token Sniffer can be challenging. However, some users have reported that this coin examiner is effective in scanning nearly any token contract, except for tokens lacking metrics or those that have not yet been released.
Is the Token Sniffer crypto scanning tool worth it? On one hand, the website is available for free, allowing traders and investors to use it without fees and time limitations. On the other hand, this tool alone is not sufficient for making well-informed investment decisions. Furthermore, it is recommended to verify the information provided by the platform through other sources.
For instance, in the case of the analysis of Ben.eth&'s PSYOP coin, a controversial point in the Token Sniffer’s report was the claim that "the creator wallet contains less than 5% of the circulating token supply (0.06%)." At the same time, Etherscan indicated that this wallet owned over 98% of the tokens.
Read also: LOYAL investors disappointed by Ben.eth&'s new token airdrop
DexTools io is occasionally mentioned as a Token Sniffer alternative, but it positions itself as "the ultimate trading app for DEFI," offering extensive information on cryptocurrencies, trading pairs, and exchanges. DexTools io provides real-time data on cryptocurrency market dynamics and includes tools for evaluating the credibility of cryptocurrency projects.
However, there is a key distinction between DEXTools and Token Sniffer. DEXTools does not conduct token audits on its own. Instead, it relies on audit results from other platforms, including Token Sniffer.
To enhance user experience, the project&'s team also provides the DEXTools app for both Android and iOS devices.
DexTools primarily focuses on decentralized projects that operate on the Ethereum blockchain and its L2 protocols and forks. As of the time of the article, DexTools gathered trading data from a minimum of 81 different chains, including popular networks like Polygon, Arbitrum, Base, and Avalanche, as well as lesser-known ones such as Linea, Alvey Chain, Muu Chain, SX Network, Energi, Tomo, Hoo Smart, and numerous others.
Users of DexTools io get access to a consolidated view of data collected across all these networks, but they also have the option to select specific chains of interest. According to DexTools, its crypto analytics platform provided data on 10,386 DEXes, 2.67 million pools, and 2.20 tokens at the time of publication.
To understand the features of the DexTools platform that allow users to complete a sniff test and compare them to Token Sniffer, let’s assess the same meme coin, PSYOP.
To assist its users in distinguishing legitimate cryptocurrencies from potential scams, DEXTools io offers a comprehensive report based on the audits completed by several token scanners. However, it cautions traders and investors that these audits are conducted automatically and emphasizes that their results "are not advice" and should be considered with other relevant factors for informative decisions.
The audit report of PSYOP presented by the DexTools crypto aggregator incorporates data from three tools: Go Plus, Hapi Labs, and Token Sniffer. This report provides a list of valuable information about the token, including:
and many other token characteristics.
It is worth noting that the most comprehensive token audit was conducted by GoPlus, whereas Token Sniffer managed to gather the most modest amount of data related to PSYOP.
No serious issues with the PSYOP coin were detected.
DEXTools io has its own scoring system io employs five criteria for assessing the reliability of a cryptocurrency:
However, the specific methodology used to evaluate each of these criteria is not explicitly detailed in the provided information.
According to DEXTools, PSYOP received a score of 99 out of 99 points in each of the categories, except for the "Pool" category, for which the platform assigned only 2 points. This resulted in a total score of 65 out of 99 points for the PSYOP coin.
Interestingly, DEXTools also provides its users with the capability to vote for or against cryptocurrencies. These votes are used as the foundation of the "Community Trust" metrics.
The rule governing community feedback established by DEXTools permits each logged-in user to assign one vote per trading pair, with the option to change their vote. In the case of the PSYOP coin, 66.1% of the 457 votes were in favor of the meme token, while 33.9% voted against it.
The team responsible for the platform asserts that it is "free for all users." However, this is true only for the basic features. Meanwhile, premium features can be unlocked only by holding the project&'s DEXT token.
Premium features are provided by the platform’s Premium plan. In addition to this mode, there is also a paid Standard plan.
As previously mentioned, the DEXTools crypto scanning platform is available for free use. The features provided by the free version of the tool include:
By holding 1,000 DEXT tokens or subscribing to the Standard plan for $19.90 per month, users can disable advertisements and gain access to features such as Telegram and email price alerts, membership in the DEXT Force private group, expanded trade analytics, wallet information, and a positions tracker.
Additionally, the platform offers 12 hot pairs as part of its premium plan. However, there is some ambiguity regarding whether the Standard plan will provide access to a total of 22 hot pairs, including the initial 10 pairs available in the free plan, or if it will add 2 extra hot pairs to the 10 pairs included in the free plan.
The Premium plan provides access to all standard features and offers additional benefits, including DEXT Force Ventures, membership in the DEXT Force Private Group, and access to exclusive information. To unlock this plan, users need to hold 100,000 DEXT tokens.
Like the Standard plan, the platform mentions that the Premium plan includes 15 hot pairs. Again, it is not entirely clear whether these 15 pairs are in addition to the pairs available to Free and Standard plan users or if they constitute the total number of pairs available to all users.
Furthermore, DEXTools has plans to expand the utility of its token to include governance functions in the future.
At press time, CoinMarketCap reported DEXT&'s market capitalization as $41,904,719, with a daily trading volume of $161,948.
CoinMarketCa also stated that DEXT traded at $0.48 at the time of publication. This made the financial requirements for DEXT holding for traders and investors willing to use the Standard and Premium plans quite high.
For example, the monthly Standard subscription would cost approximately 41.45 DEXT, while the amount of coins required for holding the subscription was 480 DEXT. The website does not specify the time duration for which users need to hold the currency to access the Standard plan.
Additionally, as previously mentioned, the Premium plan is offered to the owners of at least 100,000 DEXT, which was valued at $48,000 at the time of publication.
In contrast to the PSYOP coin, DEXT received a perfect score of 99 out of 99 points on the DEXTools crypto analytics platform. The project team showcased the audit results exclusively from GoPlus and Hapi, providing only a link to the results provided by Token Sniffer.
This choice could be influenced by the fact that Token Sniffer assigned a score of only 50 points out of 100 to DEXT.
The opinions about DEXTools are somewhat mixed in the crypto community. On the independent review platform Trustpilot, the project has garnered only four reviews since 2021, resulting in an average rating of 3.2 out of 5 stars.
The most recent review was positive, highlighting the functionality of the charting and trending tools provided by the platform. However, another review cautioned users about the trustworthiness of DEXTools io, suggesting that the website displayed honeypot tokens as non-honeypot.
Interestingly, the last two reviews labeled the project as a scam due to issues related to investing.
It is worth noting that the developers of the DEXTools crypto aggregator offer users the opportunity to explore the blockchain ecosystem using the free version of the platform without the need to fill out forms, log in, or share sensitive information.
The real-world example of assessing the PSYOP token from Ben.eth has demonstrated that identifying a fraudulent crypto project using Token Sniffer and DEXTools can be quite challenging.
There was some controversy surrounding the token ownership information detected by Token Sniffer. In contrast, the DEXTools app evaluates the safety of investments based on five categories but does not provide details about the rules it uses for evaluation.
Additionally, DEXTools relies on audits conducted by Token Sniffer and two other services, Go Plus and Hapi. Among them, Token Sniffer offered the least comprehensive audit report for PSYOP.
Relying on either DEXTools or Token Sniffer as a sole and comprehensive solution for identifying scam tokens is not advisable. However, completely forgoing the use of these services is also not a reasonable approach. This applies not only to the tools reviewed in this article but also to many other applications for automated security audits.
A more effective strategy may involve using these tools to identify obviously fraudulent cryptocurrency projects with low scores. Tokens with medium and high scores should still undergo further investigation to ensure their legitimacy.
