Cryptocurrency contract analysis part-ll

If you missed the first part of this edition, click here.

This is an example of a safe contract. It can be noted that there are no hazardous provisions within it.

A 5% fee on sales is considered acceptable as it will be used for marketing or other token-related purposes. It is worth noting that some tokens may not have fees, while others may have higher fees as stipulated in the contract. Further explanations will be provided later.

1. Honeypot: Detection of a honeypot occurs only after certain functionalities in the contract are activated, such as changing the fee to an exorbitant value of 99%. Other tokens may contain such functions, but once the contract is renounced by the owner, they cannot be triggered anymore.
2.  Mintable: The option "Mintable" refers to a smart contract that allows the creation or "minting" of new tokens on a particular blockchain. This functionality is often used in token contracts to enable the generation of new tokens according to predefined rules.
3. Blacklist: A "blacklist" is a list of undesired entities, addresses, or elements that are blocked or prevented from accessing or interacting with a specific system. In the context of smart contracts, a "blacklist" can be used to restrict certain addresses or users from performing certain transactions or accessing specific resources.
4. Modifiable Balances: This option indicates that the balances of the accounts can be modified or updated within the smart contract. This allows the implementation of customized logic to change the account balances according to specific rules or events.
5. Verified Contract: A verified contract refers to a smart contract that has undergone an audit or review by a trusted third-party entity to confirm that the contract code is legitimate, secure, and functions as expected.
6. Proxy Contract: A proxy contract is a smart contract that acts as an intermediary between the user and another smart contract. It allows the user to interact with the target contract through the proxy contract, providing an additional layer of functionality or control.
7. Ownership Renounced: This option indicates that the control or ownership of the smart contract has been renounced by its original creator. Once ownership has been renounced, the contract creator no longer has the ability to make changes to the contract or exercise control over it.
8. External Calls: External calls refer to the ability of a smart contract to interact with other contracts or external services on the blockchain. This allows the smart contract to access information or execute actions in other contracts or services.
9. Buy Tax: The "Buy Tax" is a fee applied to token purchase transactions in a smart contract. This fee is typically set to discourage purchase transactions and can be used to reward existing token holders.
10. Sell Tax: The "Sell Tax" is a fee applied to token sale transactions in a smart contract. This fee is typically set to discourage sale transactions and can be used to reward existing token holders or fund other activities of the contract.
11. Wallet tax: In theory, if the contract creator is malicious, they can establish different fees for different wallets, including a lower selling fee for their own wallet. This could result in an unfair situation where token holders who want to sell would be penalized with a higher fee, while the contract creator or certain privileged participants would pay a lower fee.
12. Permanent Ownership: This option indicates that the ownership of the smart contract is permanent and cannot be transferred or waived. This means that the original creator of the contract will always be the owner and will have full control over it.
13. Tax Modifiable: This option indicates that the fees applied to the transactions of the smart contract can be modified or adjusted. This allows the smart contract to adapt the fees based on different conditions or requirements.
14. Transfers Pausable: The "Transfers Pausable" option indicates that token transfers in the smart contract can be temporarily paused or halted. This can be useful in emergency situations or to prevent suspicious activities.
15. Sell Limit: "Sell Limit" refers to a restriction or limit set in a smart contract that caps the maximum quantity of tokens that can be sold in a single transaction or during a specific period of time.
16. Anti-Whale Mechanism: An "Anti-Whale Mechanism" is a functionality implemented in a smart contract to prevent large token holders, known as "whales," from exerting excessive control over the market or manipulating token prices.
17. Transfer Cooldown: "Transfer Cooldown" refers to a defined period of time in a smart contract that imposes an interval between token transfers. This can be used to limit the speed or frequency at which tokens can be moved.
18. Whitelist: A "whitelist" is a list of specific entities, addresses, or elements that are allowed or authorized to access or interact with a specific system. In a smart contract, a "whitelist" can be used to only allow certain addresses to perform certain transactions or access specific resources.
19. Self-Destructible: The "Self-Destructible" option indicates that the smart contract can be terminated or "self-destructed" by its original creator. This allows the contract to be removed from the blockchain and its resources freed up.

I sincerely hope you enjoyed the article and I trust that from now on you will be more attentive to avoid falling victim to scams. In our next article, Part III, we'll delve into the subject of contract waivers. I wish you all a good afternoon and look forward to our next meeting.

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