However, the risk of a "rug pull" or getting "rekt"

Question

However, the risk of a "rug pull" or getting "rekt"

(wrecked) exists in the cryptocurrency market, especially for tokens that are not well-established or have not undergone thorough audits and reviews. Here are some factors to consider:

Price Volatility: Velas's current price is $0.00654, and it has dropped -5.73% over the past 24 hours. Its All Time High (ATH) was $0.566, and it is currently -98.8% down from that. This indicates high volatility, which is a risk factor.

Market Capitalization: Velas has a market capitalization of $16.31 Million, which is relatively small in the context of the entire cryptocurrency market. Lower market cap coins are generally considered riskier.

Trading Volume: A 24-hour trading volume of $501.76 Thousand is not particularly high, which could indicate less liquidity and higher risk.

Exchange Presence: It is traded on 13 markets and 11 exchanges, with Huobi being the most active. The number and reputation of exchanges could be a factor in assessing risk.

Circulating and Maximum Supply: Both are 2.49 Billion tokens, which means all tokens are in circulation. This could be a risk if large holders decide to sell.

Community and Developer Activity: Not mentioned in the data, but this is a crucial factor. A strong, active community and transparent developers can be a positive sign.

Official Website and Block Explorer: Always good to check these for more information and to assess the project's transparency and professionalism.

Regulatory Compliance: Not mentioned in the data, but compliance with regulatory frameworks can also be a positive indicator of legitimacy.

Audits and Reviews: Not mentioned in the data, but has the project undergone any security audits or peer reviews?

Given these factors, while Velas may have some interesting technology behind it, like any investment in the crypto space, it comes with risks. Always do your own research and consider consulting with a financial advisor before making any investment.

#cryptocurrency #english #velas

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29.08.2023

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Mahesh Kumar · Accepted Answer

Mahesh Kumar

Well said sir ...Mr Hossain and team has anything to say Hossain on this statement

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29.08.2023

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However, the risk of a "rug pull" or getting "rekt"

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