Signals and risks

Characteristics that help to better assess a situation.

Terms

The terms below are about what may stand out in a price, a token or a pattern. A signal can be an indication, but on its own it need not mean anything. What it really is only becomes clear from investigation.

PhishingMisleading messages that try to obtain data or access.Pump and dumpA sharp rise in price followed by an equally fast drop.Coin dumpA large amount of a token sold within a short time.Price manipulationInfluencing a price in a way that creates a misleading picture.Wash tradingTrades back and forth that suggest more activity than there is.Honeypot tokenA token that can be bought but is hard to sell.Rug pullA project where the people behind it suddenly withdraw value.Suspicious exchange patternMovements around an exchange that stand out.

Frequently asked questions about signals and risks

Many people want to know how to recognise a suspicious situation before any damage is done. The terms above explain the individual signals; these answers help to place them.

Which signals point to crypto fraud?

Common signals are time pressure, promised returns without risk and payment requests via unknown wallets. The terms above describe these patterns separately, so you recognise them sooner.

What should I do about a gut feeling regarding an investment?

Stop transferring and record what has happened. Paucitas can map the transactions in a traceable way, so it becomes clear whether there is reason for concern.

Can a signal also be innocent?

Yes. A single signal proves nothing; it is a reason to look more closely. Each situation shows whether something is really going on.