# Token Discovery Guide

> Guide to discovering and evaluating new tokens — on-chain screening, red flag detection, fundamental analysis, and due diligence workflow. Covers DEX screening tools, liquidity analysis, holder distribution, and scam identification. Use when helping users research new tokens safely.

- Skill: `nirholas/token-discovery-guide` (Agent Skill)
- Install (CLI): `npx skillmds@latest add nirholas/token-discovery-guide`
- Raw SKILL.md: https://api.skillmd.com/api/skills/nirholas/token-discovery-guide/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Product & Planning
- License: MIT
- Author: nirholas (https://skillmd.com/u/nirholas)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/nirholas/token-discovery-guide

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# Token Discovery & Evaluation Guide

Finding new tokens early can be profitable, but most new tokens are scams or worthless. This guide teaches systematic evaluation to separate signal from noise.

## Discovery Sources

### On-Chain Discovery

| Source | What It Shows | Best For |
|--------|-------------|----------|
| **DexScreener** | New pairs, price charts, volume, liquidity | Finding trending tokens across 80+ chains |
| **DEXTools** | New pairs, hot tokens, real-time trading | Similar to DexScreener with different UX |
| **Uniswap Analytics** | Top pools by volume/TVL | Blue-chip DeFi tokens |
| **Defined.fi** | Multi-chain token analytics | Cross-chain discovery |

### Aggregator Discovery

| Source | What It Shows | Best For |
|--------|-------------|----------|
| **CoinGecko Trending** | Top trending tokens by search volume | Finding retail interest |
| **DeFi Llama** | Protocols ranked by TVL, new protocol launches | DeFi token discovery |
| **CoinMarketCap New** | Newly listed tokens | CEX-listed tokens |
| **CryptoPanic** | News mentions of tokens | narrative-driven discovery |

### Social Discovery

| Source | Signal Quality | Warning |
|--------|---------------|---------|
| Crypto Twitter (CT) | Variable — can be great or terrible | Heavy shilling; verify independently |
| Reddit (r/CryptoCurrency) | Community-filtered | Echo chamber risk |
| Discord/Telegram | Alpha leaks from protocol communities | 90%+ is noise or scams |
| Governance forums | High quality (protocol-specific) | Slower but more reliable |

## The Evaluation Framework

### Step 1: Quick Scan (30 seconds)

Check these immediately — most scams fail here:

| Check | How | Red Flag |
|-------|-----|----------|
| **Liquidity** | DexScreener/DEXTools | <$50K total liquidity |
| **Contract verified** | Etherscan/Arbiscan | Unverified contract code |
| **Age** | When was liquidity added? | <24 hours old |
| **Holder count** | Etherscan token page | <100 holders |
| **LP locked** | Check if LP tokens are locked/burned | LP not locked |

### Step 2: Fundamental Analysis (5 minutes)

| Factor | Where to Check | What to Look For |
|--------|---------------|-----------------|
| **Website** | Google the token | Professional site, team info, docs |
| **Documentation** | Docs/whitepaper | Clear tech, tokenomics, roadmap |
| **Team** | LinkedIn, Twitter | Verified identities, track record |
| **Audit** | Project website | Reputable auditors (Certik, Trail of Bits, OpenZeppelin) |
| **GitHub** | GitHub org | Active development, multiple contributors |
| **Community** | Discord, Telegram | Organic discussion, not just hype |

### Step 3: On-Chain Analysis (10 minutes)

| Metric | How to Check | Good | Bad |
|--------|-------------|------|-----|
| **Top holders %** | Etherscan "Holders" tab | Top 10 hold <30% | Top 10 hold >50% |
| **Deployer holdings** | Check deployer address | <5% of supply | >10% of supply |
| **Liquidity depth** | DexScreener | >$500K | <$50K |
| **Sell/buy ratio** | DEXTools | Balanced | 90%+ buys (artificial) |
| **Transaction tax** | Try small sell on DEX | 0-5% tax | >10% tax (likely honeypot) |
| **Transfer restrictions** | Check contract code | None | Blacklist/whitelist functions |

### Step 4: Tokenomics Analysis

| Factor | Good Sign | Red Flag |
|--------|-----------|----------|
| **Total supply** | Fixed or deflationary | Unlimited minting capability |
| **Vesting schedule** | Team tokens locked 1-4 years | No vesting, team can dump |
| **Distribution** | Fair launch or wide distribution | 80%+ to team/VCs |
| **Utility** | Clear token use case in protocol | "Governance" only with no real governance |
| **Burn mechanism** | Sustainable tokenomics | Deflationary hype without substance |

> **Sperax example**: SPA has clear utility — stake for veSPA governance power, earn protocol fees + xSPA rewards. 30% of USDs yield goes to SPA buyback-and-burn (deflationary). This is strong tokenomics.

## Scam Identification

### Common Scam Types

| Type | How It Works | Detection |
|------|-------------|-----------|
| **Honeypot** | You can buy but can't sell | Try a small test sell; check token sniffer tools |
| **Rug pull** | Dev drains liquidity pool | Check if LP is locked; check deployer wallet |
| **High tax token** | 50%+ sell tax | Test sell or check contract for tax functions |
| **Fake token** | Impersonates known protocol | Verify contract address on official channels |
| **Mint-and-dump** | Dev mints new tokens and sells | Check if contract has unrestricted mint function |
| **Fake liquidity** | LP is 99% one token | Check pool composition on DEX |

### Scam Detection Tools

| Tool | What It Checks | Cost |
|------|---------------|------|
| **Token Sniffer** (tokensniffer.com) | Contract analysis, similarity to known scams | Free |
| **GoPlus Security** (gopluslabs.io) | Honeypot detection, contract risk | Free API |
| **De.Fi Scanner** | Audit database, contract risk scanner | Free |
| **Rugcheck** (rugcheck.xyz) | Solana-focused rug pull detection | Free |

### Quick Contract Red Flags

When reading contract code on Etherscan:

| Function | Risk Level | Why |
|----------|-----------|-----|
| `setFee()` / `setTax()` | Medium | Owner can increase tax to 100% |
| `blacklist()` | High | Owner can prevent addresses from selling |
| `mint()` (unrestricted) | Critical | Owner can create infinite tokens |
| `pause()` | Medium | Owner can freeze all transfers |
| `setMaxTx()` | Medium | Can restrict selling to tiny amounts |

## Evaluation Cheat Sheet

```
🟢 GREEN FLAGS (proceed with caution):
- Verified contract + audit from reputable firm
- Liquid (>$500K LP, locked/burned)
- Team is doxxed with track record
- Active GitHub with months of commits
- Growing TVL and organic community
- Clear token utility and sustainable economics

🟡 YELLOW FLAGS (extra caution):
- Unaudited but verified contract
- Anonymous team with working product
- Low liquidity (<$100K) but growing
- Token is <1 month old
- High social hype relative to fundamentals

🔴 RED FLAGS (avoid):
- Unverified contract
- No audit, no documentation
- LP not locked
- Top 5 wallets hold >50%
- Buy/sell tax >10%
- Blacklist or pause functions in contract
- Zero GitHub activity
- Claims of 1000x returns
```

## Agent Tips

1. **Default to skepticism** — 95%+ of new tokens are worthless or scams
2. **Verify, don't trust** — always check contract addresses on official channels
3. **Liquidity depth matters more than price** — can you actually sell?
4. **LP lock is non-negotiable** — if LP isn't locked, it's a rug risk
5. **Small test first** — always try a small transaction before committing real money
6. **Blue-chip DeFi is safer** — tokens with years of track record (ETH, USDC, USDs, ARB)
7. **Never FOMO** — if you feel urgency, it's probably a trap
8. **DexScreener is your best friend** — free, comprehensive, multi-chain

## Links

- DexScreener: https://dexscreener.com
- Token Sniffer: https://tokensniffer.com
- GoPlus Security: https://gopluslabs.io
- DeFi Llama: https://defillama.com
- Etherscan: https://etherscan.io
- Arbiscan: https://arbiscan.io
- Sperax (established DeFi on Arbitrum): https://app.sperax.io