Research using Horus

Learn how you can utilize our tools.

Always research thoroughly before investing in any token. Horus tools help you uncover hidden risks and make informed decisions, ensuring your safety in the DeFi space. When researching a new Ethereum token, it's essential to evaluate its legitimacy and potential. Here's an example of how you can use Horus tools to conduct a thorough analysis.

Step 1: Gather Basic Token Information

Let's assume you’re researching a new token called "XYZ Token." You can start by searching our public scanners for the contract address (this provides the deployment state) or entering it into the Horus Assistant Bot (this provides real-time information).

• Horus provides you with the following:

  • Token Contract Analysis (e.g., funding wallet, supply, taxes, transfer limits, same contracts deployed and rugged, Horus Safety Index, liquidity lock or burn)

  • Owner Wallet Analysis (e.g., oldest transaction, linked deployments, distance 0-2+ rugs, most successful previous token)

  • Social Media (e.g., Twitter or website links)

  • Sniper Analysis (e.g., total holdings by early buyers, realized profits, fresh wallets)

  • Holders Analysis (e.g., realized and unrealized profit, total return, average holding time)

Step 2: Analyze Token Holders' Distribution

Using the Horus Assistant bot or Etherscan's "Holders" tab, check the token's holder statistics.

• What to look for:

  • The top wallets hold X% of the supply.

  • The liquidity pool still holds Y% of the supply.

  • The developer wallet controls Z% of tokens.

Comments: High concentration in a few wallets is a red flag. If developers or insiders hold too much of the supply, they could manipulate the token price or conduct a rug pull.

Step 3: Evaluate Liquidity and Locks

Next, use the Horus Assistant bot or check the side tabs of Dextools or Dexscreener to assess the liquidity pool and verify whether it is locked or burned.

• What to look for:

  • Total liquidity: X

  • Locked liquidity: Only 10% of the pool is locked for 30 days -> make sure nearly 100% is locked.

  • Is it burned? Is it locked on any reputable website?

Comments: Low or unlocked liquidity is a significant risk. Developers can withdraw funds from the pool at any time, draining the token's value.

Step 4: Smart Contract Review

Analyze XYZ Token’s contract through Horus tools or a 3rd party contract simulator like Honeypot.is.

• What to look for:

  • No ownership renouncement: The developer still has control over the contract.

  • Check for suspicious functions:

    • Unlimited minting capability.

    • Blacklisting functionality.

    • High tax.

    • No hard-coded limits for transfer limits or taxes.

Comments: Tokens with backdoor functions, such as unlimited minting or blacklisting, are highly risky. These features could be exploited to harm investors.

Step 5: Social Media and Community Sentiment

Analyze discussions about XYZ Token on Telegram, Twitter, and other social media. Check if the project has a website; if so, check the grammar and authenticity of the content.

• What to look for:

  • Is the Telegram group heavily moderated? Are critical messages being deleted? Are there genuine people chatting, or is it botted?

  • Does the Twitter account have a high amount of followers but very low engagement?

  • Does Twitter have a lot of engagement but may be botted?

  • Are there reports of users being unable to sell their tokens?

  • Search for cashtag ($TOKEN) or hashtag (#TOKEN) on Twitter -> Are there community members shilling, influencers talking about the project?

Insights: Artificially inflated social media activity and suppression of criticism are signs of a possible scam or poorly managed project. But if you see an active team, positive sentiment in the chat, and generally quality content posted on socials, it is a sign of a serious team.

Step 6: Sniper Holdings, Possible Chart Risk

Requesting a Sniper Analysis of a token using the Horus Assistant Bot is a great way to evaluate future chart health. Sniper bots are often used by traders to gain an advantage by executing trades instantly at launch, securing a large portion of the token supply before regular users can act. This tactic allows them to control the token’s supply and buy large amounts of tokens in the early stages for cheap. You'll often see devs of a project "bundle" a launch, essentially meaning the same: buying supply from several wallets for less visible supply control.

The danger arises when these snipers or developers decide to sell or "dump" their holdings, causing a rapid price collapse that leaves unsuspecting investors with significant losses. Our tools can help you analyze sniper activity, identify how much supply is still in their hands, find connected clusters, see airdropped wallets, and more.

Always research thoroughly before investing in any token, even if it is coming from one of our alpha or signal tools. Horus tools help you uncover hidden risks and make informed decisions, ensuring your safety in the decentralized finance space.