If you’ve been paying attention to the crypto world recently, you’ve probably heard of Swarms. This token is gaining traction on the Solana blockchain. But is it safe to invest in? Let’s break it down and analyze what’s really going on behind the scenes of Swarms Token.
The Basics of Swarms Token
Before diving into the details, here’s a quick overview of what Swarms is all about.
- Blockchain: Solana
- Token Name: Swarms
- Symbol: SWARMS
- Contract Address: 74SBV4zDXxTRgv1pEMoECskKBkZHc2yGPnc7GYVepump
- Total Supply: ~1 Billion (999,985,553.281524)
- Decimals: 6
- Token Type: SPL Token
- Creator Address: TSLvdd1pWpHVjahSpsvCXUbgwsL3JAcvokwaKt1eokM
- Social Media: Twitter
Understanding Swarm’s Risk Profile
Now that we know the basics, it’s time to dive deeper into the token’s security features. When it comes to crypto, security is a huge concern. So, let’s go through Swarm’s key features and assess the potential risks.
1. Open Source Code
✅ Yes, Swarms is open source.
This is a big plus. Open-source means anyone can inspect the code, ensuring transparency. This reduces the likelihood of hidden malicious intent from the creators. If there are bugs or vulnerabilities, they can be discovered and fixed by the community. So far, Swarm passes this check.
2. Minting Capability
✅ No, Swarms cannot mint more tokens.
A critical feature. When a token can be minted endlessly, the value can get diluted, leaving investors in a worse position. With Swarm, the supply is fixed at approximately 1 billion tokens, which adds an element of stability.
3. Metadata Security
✅ Yes, Swarms has immutable metadata.
Immutable metadata means once the token’s details are set, they cannot be changed. This is an important feature because it ensures that the token’s key attributes remain the same. You won’t suddenly find unexpected changes like a new total supply or changed tokenomics. The Swarm token’s details are set in stone.
4. Freeze Authority
✅ Yes, the freeze authority is revoked.
This is a huge win for the decentralization side of things. When the freeze authority is revoked, it means no central party can stop transactions or freeze your assets. This makes the network more resistant to censorship and interference.
5. Liquidity Pool (LP) Burn
🔥 98.99% of liquidity is burned.
This is a significant factor. Burning a large portion of liquidity helps mitigate the risks of a rug pull, where the creators withdraw liquidity and leave investors holding worthless tokens. With 98.99% of the liquidity burned, it’s harder for the token’s creators to exit with the funds, making it more secure.
6. Top 10 Holders
⚠️ 0% of the tokens are held by the top 10 wallets.
This is a solid indicator of decentralization. Ideally, tokens should be spread out as evenly as possible to avoid situations where a few large holders can manipulate the price. Swarm seems to do well in this department.
What’s the Risk with Incrementable and Modifiable Rates?
Here’s where things get tricky. There’s a warning about the sell rate being set to 99%, and that’s a variable honeypot risk. What does this mean?
Honeypot risk refers to a scenario where you can buy a token, but once you try to sell it, the transaction fails because of an artificial restriction—usually a high tax or variable rate set by the creators. In this case, Swarm’s sell rate is being modified to 99%, making it extremely difficult to sell once you buy.
This isn’t necessarily an immediate red flag, but it’s something to keep an eye on. Such mechanisms are often used by malicious actors to trap investors into holding tokens they cannot easily sell.
Liquidity Pools: The Numbers Behind Swarms
Swarms has two liquidity pools where it’s being traded:
1. Raydium Pool (SOL-Swarms)
- Liquidity: $1.18 Million
- 24-Hour Volume: $224.28 Million
- LP Burned: 98.99%
- Created on: December 20, 2024
2. Meteora Pool (Swarms-SOL)
- Liquidity: $463.95K
- 24-Hour Volume: $25.92 Million
- LP Burned: None
- Created on: December 20, 2024
Both pools show decent liquidity, with the Raydium pool being the larger of the two. However, there’s a key difference here: the LP tokens in the Meteora pool are not burned. This is a potential vulnerability, as it leaves room for manipulation or even a rug pull.
The fact that Raydium’s pool has 98.99% of its liquidity burned provides a higher level of security in this case.
What’s the Final Risk Rating for Swarms Token?
Based on the analysis of Swarm’s key features, here’s how we’d rate its safety.
- No Minting Capability: ✅ Safe
- Open-Source Code: ✅ Safe
- Immutable Metadata: ✅ Safe
- Freeze Authority Revoked: ✅ Safe
- Liquidity Pool Burned: 🔥 98.99% burned (Good)
- Top Holders Decentralization: ✅ 0% concentration (Good)
- Honeypot Risk with Sell Rate: ⚠️ High risk (Needs caution)
Final Rating: 6.9/10
Risk Level: Medium
Should You Invest in Swarms?
Swarms offers a mixed bag of positives and risks. On one hand, it has solid security features like immutable metadata and a large portion of its liquidity burned. These factors help mitigate some risks and give confidence in the token's stability.
On the other hand, the sell rate of 99% and the potential for variable honeypot risks should be a cause for concern. This could trap investors, making it hard to exit positions if things go south.
If you’re considering investing in Swarms, proceed with caution. It’s not a token you can blindly trust, and you should fully understand the risks before making any decisions. Stay informed, and never invest more than you’re willing to lose.
Final Thoughts
With the crypto space evolving rapidly, tokens like Swarms are always pushing boundaries. But security isn’t something to compromise on. Keep a close watch on its developments and always be cautious with any token that shows potential risks.
Want more insights on new tokens? Stay tuned for more in-depth analyses like this one. Feel free to share your thoughts on Swarms—what do you think about its future in the crypto world and if you are looking for a full detailed report of this token contact us here.
Stay tuned for more updates on Swarms and other Altcoins on Blockospot
For instant updates and alerts, Subscribe to our YouTube Channel, join our Telegram channel and follow us on X.
Disclaimer: The information found on Blockospot is for educational purposes only. It does not represent the opinions of Blockospot on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.