Before you buy or interact with any token, knowing how to read key signals can help you evaluate risk and avoid scams. These signals are available on Phantom and across multiple platforms including blockchain explorers, token analysis tools, and trading terminals. This guide explains what each signal means and what to watch out for regardless of where you're viewing it.

How Phantom helps protect you #

Phantom includes built-in protections that run automatically in the background. Before you use any external tool, check what Phantom is already telling you about a token.

Spam detection #

Phantom automatically identifies and hides tokens it believes are spam. If a token has been hidden you will see a warning that reads "This token was hidden because Phantom believes it is spam." This is a strong signal to avoid interacting with it.

If you believe a token was hidden by mistake you can tap Report as not spam directly from the token page.

Transaction warnings #

Before you swap any token, Phantom simulates the transaction and shows you a preview of what will happen. If something looks suspicious you will see a warning. Always read these before proceeding and if you see a warning, stop and verify the token before doing anything.

Key signals to look for #

Market cap #

Market cap is the total value of all tokens currently in circulation. It gives you a sense of the token's overall size.

Liquidity #

Liquidity refers to the total value available for trading a token at any given time. It determines how easily a token can be bought or sold at the price you expect.

Very low liquidity means your trade may not complete at the price shown, and prices can be manipulated more easily.

Top holder concentration #

This shows what percentage of the total token supply is held by the largest wallets, typically the top 10 holders.

A very high concentration among a small number of wallets means the token is vulnerable to sudden sell offs. If a handful of wallets control most of the supply they can crash the price at any time.

Price and price history #

The current price of a token on its own doesn't tell you much. What matters more is how the price has moved over time.

A sudden sharp spike followed by a steep drop can indicate a pump and dump or rug pull. The price was driven up artificially and then crashed when creators sold off or withdrew liquidity.

LP locked #

LP stands for liquidity pool. LP Locked refers to whether the liquidity has been locked by the creator, meaning they cannot withdraw it.

If LP Locked shows 0% or a very low percentage it means the creator can withdraw all liquidity at any time, leaving token holders unable to sell. This is one of the most common mechanisms used in rug pulls.

Token permissions #

Token permissions tell you what the creator is still able to do to the token after launch.

• Mintable means the creator can create new tokens at any time, increasing supply and reducing the value of existing tokens.
• Freezable means the creator can freeze token accounts and prevent holders from selling. If freezable is enabled this is a significant red flag.
• Mutable means the creator can change the token's name, logo, or other metadata after launch.

Risk scores #

Some tools provide an overall risk score for a token based on a combination of signals. These scores are a useful starting point but should not be treated as the final word. Always look at the individual signals alongside any score.

What to do if something looks off #

No single signal tells the whole story. Look at them together before making a decision. The more red flags you see across price history, liquidity, holder concentration, and token permissions, the more cautious you should be. If something feels off, trust that instinct.

Do not buy, swap, or interact with the token.

Check the token's official social media channels. Look for a real community and verifiable team information. Be skeptical if you can't find either.

Verify the contract address through a trusted source like CoinGecko or the project's official website.

If the token appeared in your wallet unexpectedly, hide and report it in Phantom.

If you think you have already interacted with a scam token, see I was scammed or my wallet was drained. What can I do?

Recommended tools by network #

These tools can help you research a token before you buy. You don't need to use all of them but checking more than one source gives you a fuller picture.

Solana #

• RugCheck provides an overall risk score and flags common red flags like unlocked liquidity, token permissions, and holder concentration. A good first stop when researching an unfamiliar Solana token.
• Solscan shows onchain activity including market overview, holder data, and full transaction history. Useful for verifying a token's contract address and reviewing past activity.
• Solsniffer provides a safety score for Solana tokens based on common risk factors. Quick and easy to use for a fast first check.

Ethereum and EVM networks #

• Token Sniffer analyzes tokens for common scam patterns including honeypot behavior and suspicious contract settings.
• Honeypot.is specifically checks whether a token is a honeypot, meaning you can buy but cannot sell.
• Etherscan shows full onchain activity including holder data, transaction history, and token contract details.

For a full guide on what these signals mean and what to look for, see Tools to help you avoid crypto scams.