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FAQ: Trading and Token Management

Learn how bonding curves work, how to trade tokens, and the security measures in place to prevent rug pulls.

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Written by Rocko John
Updated over a week ago

1. Where does the money go when I launch a token?

  • Bonding Curve Contract: When you launch a token, the funds go into a bonding curve smart contract.

  • Token Supply Breakdown: Out of 1 billion tokens:

    • 800 million tokens are available for trading on the bonding curve.

    • 200 million tokens are reserved for migration.

  • Post-Sale Liquidity: Once the 800 million tokens are sold (or the bonding curve reaches a net 80 SOL influx), the remaining 200 million tokens are added to a Raydium liquidity pool for open trading.


2. What is a bonding curve?

  • Dynamic Pricing: A bonding curve sets token prices based on supply and demand. Early buyers pay lower prices, and as more tokens are purchased, the price increases.

  • Virtual Reserves: Virtual SOL and token reserves are used as “phantom liquidity” to smooth price changes, creating a more stable trading environment.


3. What happens if a token I buy drops in value?

  • Market Fluctuations: Token prices can fluctuate based on market activity.

  • Your Options: You can choose to hold your tokens or sell them at the current market price. Volatility is inherent to the model, especially in early trading stages.


4. Can I lose money trading meme coins?

  • Volatility Risk: Yes, meme coins are highly volatile, and prices can rise or fall quickly.

  • Invest Responsibly: Always invest responsibly and consider your risk tolerance before trading.


5. How do I know which tokens to buy?

  • Key Indicators: Look for tokens with active communities, transparent teams, and strong liquidity.

  • Market Insights: Following trends, influencers, and analyzing trading volume and engagement can provide additional insights.


6. Why do some meme tokens fail?

  • Failure Factors: Tokens may fail due to a lack of community support, poor marketing, or insufficient liquidity.

  • Importance of Fundamentals: Successful tokens generally have robust fundamentals, which can be evaluated before buying.


7. What makes some meme tokens successful?

  • Community & Marketing: Successful meme tokens often benefit from strong communities, viral marketing, and influencer support.

  • Liquidity & Engagement: They also achieve higher trading volumes and deeper liquidity, which can improve price stability and long-term viability.


8. How can I avoid getting rugged?

  • Creator Control: Check how much of the token supply the creator controls.

  • Liquidity Monitoring: Keep an eye on liquidity locks and trading activity.

  • Red Flags: Watch for sudden large sales or a disappearing team.

  • Platform Measures: On our end, any liquidity tokens controlled by the platform are burned to prevent rug pulls.


9. How safe is this platform?

  • Blockchain Security: We operate on the Solana blockchain and undergo audits to ensure security and transparency.

  • Rug Pull Prevention: Our bonding curve design and migration process to DEXs (like Raydium) add layers of security, and platform-controlled liquidity tokens are burned to safeguard users.


10. How do I check charts and data to make informed purchases outside the platform?

  • Blockchain Explorers: You can analyze token data using blockchain explorers such as Solscan.

  • On-Platform Metrics: Our platform also displays key metrics like price, volume, and liquidity post-launch for quick reference.


11. Does the platform display volume and price when a token is launched?

  • Yes: Immediately after launch, the platform displays vital metrics including current price, trading volume, and liquidity information.


12. How do I keep my tokens secure?

  • Wallet Safety: Always keep your private keys and recovery phrases secure and never share them.

  • Use Secure Tools: Use secure wallets and enable two-factor authentication whenever possible.

  • No Storage of Sensitive Data: Our platform does not store your sensitive wallet information.


13. How quickly can I add all the token information, and is it done in one tweet?

  • Single-Tweet Launch: Yes, you can provide all the token details (ticker, name, description, and supply) in a single tweet when launching a token with our platform.


14. What happens if two people try to launch the same token at the same time?

  • Parallel Launches: Both tokens will launch under the bonding curve system.

  • Market Competition: They will compete based on trading volume and engagement, with the token generating higher interest and liquidity being featured on the leaderboard.

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