Are you interested in knowing the duration of the liquidity lock for BEP-20 tokens on the decentralized exchange where they are being traded? It's quite simple to obtain this information. All you need to do is follow a few easy steps.
When tokens are locked away for a longer period, it can prevent price manipulation and protect investors from sudden token dumps. It's worth noting that when liquidity is locked for a very short period, it could be a sign of a potential rug pull scam.
In rug pull scams, the liquidity is locked for a short period to build investor confidence and is then suddenly remove liquidity, causing the token value to plummet.
What is easy way to understand rug pull?
When a new project starts in the crypto industry, developers often have to provide the initial liquidity because others find it difficult to trust the viability of the project.
After adding the liquidity, people may start trading the token and become involved in the project.
However, some developers may suddenly pull the liquidity out and shut down the website and project communication channels, leaving the community with worthless tokens that will likely never regain any value. This is the rug pull in the crypto world.
Check Liquidity Lock Duration
Step 1: Get Token Contract Address
To check how long liquidity is locked for a token on the BNB chain, you need to find the token's contract address on its website or by asking the team for the contract address on their Telegram or Discord channel.
When a project is already listed on cryptocurrency price tracking websites like CoinMarketCap and CoinGecko, you can easily obtain the token's contract address from there.
Step 2: Find Lock Duration of Liquidity
Visit PooCoin website and enter contract address of token in search bar.
To view the token on PooCoin, simply click on the token in search result. After that, click Info.
You can view the current liquidity for the token under LP Holdings. This liquidity represents the both project owner's supplied liquidity and trading liquidity. For instance, current liquidity for the DreamAi token is $17,619. Now, Click Holders.
You will be redirected to the BSC scan page for this specific token, where you can find a list of cryptocurrency wallets that have provided liquidity.
You need to look for the addresses with a 📄 sign, as this indicates that these addresses have locked their liquidity for a specific duration, while others can remove their liquidity whenever they want.
When you don't see the 📄 sign next to any address, it means that the liquidity for that specific token is not locked and can be withdrawn at any time.
Now that you have identified the wallets with liquidity lock, select the wallet with the higher percentage, as this indicates that specific wallet has added a significant amount of liquidity.
When liquidity shares are equally distributed among all locked wallets, you can check the duration for each wallet that has locked their liquidity to validate that either it is safe to trade or not.
For instance, I see a wallet named Pinksale: PinkLock V2 in the list and it has 94% of the liquidity locked, that means that the majority of the liquidity for this token is locked in this wallet.
So, in this tutorial, we will be checking the liquidity lock duration of that specific address shown in image below. Simply click on it to proceed. Next click on Txn Hash address.
In Overview>Tokens Transferred tab, you can view the DRM tokens that have been transferred to PancakeSwap, as well as the number of WBNB tokens that were transferred to PancakeSwap. WBNB is typically used as a trading pair for BEP20 tokens.
Scroll down through the logs and locate the data tab that shows the Unlock Date number. Once you have found it, please copy this number.
Go to Unix Time Stamp website.
Pate the number you copied and click Convert. This will allow you to view the specific date and time when the liquidity lock will expire.
Frequently Asked Questions
1. Is it not possible to trade on DEX without locked liquidty?
When trading volume is high, it is generally easier to execute trades in the market due to the increased trading liquidity. However, during periods of low trading volume and zero locked liquidity, it will difficult to fulfill the order.
2. What tokens are called BEP-20 tokens?
BEP-20 tokens are tokens that are created on the Binance Smart Chain (BSC) using the BEP-20 token standard. This standard is similar to the Ethereum ERC-20 standard and is used to define the basic rules that a token must follow to be used on the Binance Smart Chain.