🧠 3 Things to stay away from..(costly mistakes)

Hey Seedphrase Fam 👋  In this economy, we know gift season can be tough. To help ease the burden, we're giving away two Amazon gift cards! Just scroll down to enter.

Today's Agenda 📓: 

• 🧠 3 Signals to flag crypto projects.

• 🎁 Gift Cards for Seedphrase Nation!

• 🍿 Premium Snack: How Investors Make 100x Gains

• 😂 Meme of the Day.

🧠 3 Signs of a Rug Pull

Shockingly, the NFT bull run is making a comeback. 

The pump defies all logic & reason, kinda like Antonio Brown on this podcast. But we're here for it- go get your bag king (or queen). In tomorrow's edition, we'll let you know what NFT projects are pumping & which ones to keep any eye out for some gains. 

Today, we're going to teach you how to not get rugged. 

⚜️ By the end of this, you'll know how to use Etherscan to read contracts, without any technical background. Let's go.

Step Zero: Get the NFT's Contract on Etherscan. (Skip if you know this.)

Go to OpenSea, find the project, click the three little dots next to the project name, go to view on Etherscan. 

 🔍 3 Ways to Verify a Rug on Etherscan:

1. Is the Contract Verified?

If you scroll down, you'll see a menu toggle that looks like this: 

Next to "Contract" there should be a green check mark, indicating the code is verified. If there is no check mark, that means the code is unreadable. 

Unreadable code has a very high probability of being malicious. 

Abandon ship. 

2. Keywords

Now you're going to read code without any coding experience. 

It all comes down to searching the code for these 3 keywords:

1. migrate

2. timestamp & time-lock

3. upgradeable proxy

To do this: select contract, make sure you're on code, and search the silly little words.

Migrate:- No results: You're gucci, mint away. ✅- Results: F*cking run. This means the contract owner has the ability to drain all funds from the contract at any time. 

Timestamp & Time-Lock:- No Results: BAD. Get out now. Contract owners can drain funds.- Results: Green flag. ✅

Upgradeable Proxy:- No Results: Good sign. Proceed. ✅- Results: If this term is in the contract, it means the owners can upgrade, or change, the contract to WHATEVER they want. A.K.A., another way to get rug pulled.

P.S. "proxy" on its own is fine and pretty standard. It's the upgradeable proxy that will screw you. 

4. Mint

Ok stick with me here. This is the most important one. 

We've heard SO many stories of people connecting their wallet to a fake mint and getting their wallet drained. It even happened to BAYC holders who aped into a fake giveaway when the BAYC discord got hacked. 

If they just checked the contract before minting, they wouldn't have collectively lost $360K.

👉 Search the code for: 

Mint Function: You want to make sure the contract indeed has a mint function. It can be coded differently on different contract, so just search "mint" and find one with function in front of it (usually function_Mint) 

SendETH Function: Scam. Scam. Scam. This allows owners to transfer contract funds to another ETH wallet. 

SafeTransferFrom: This could be a red flag, but not necessarily. It can allow owners to transfer NFT's from certain wallets. This one we would give an orange flag. 

🎁 Sponsor of the Day: Amazon

We're playing Santa this year and giving two of you $25 Amazon gift cards. 

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Winners will be announced this Friday, just in time for the holidays. 🎄 🕎

🍿 How Investors Make 100x Gains.

In today's premium email, we teach you how smart investors make some huge gains. It involves launchpads. 

What is a Launchpad?

Launchpads are like the Food Court at a mall: you can get a taste of anything you want, all in one place. 

The difference is that while the Food Court usually serves up some old Panda Express or BK, Launchpad are all about the new-new.

They serve as one stop shop for a variety of brand spanking new project launches. 

Launchpad 101: 

• Who: They are usually operated by a crypto exchange, or a company committed to the launchpad life.

• What: They are a marketplace of sorts for investors to buy into new crypto projects at a discounted price, before the tokens are publicly released.

• How: Most new crypto projects launch via ICO (Initial Coin Offering). This is when they offer the initial supply of their tokens at a discount to early investors. It gives the project immediate liquidity to develop, and investors an opportunity for crazy returns.

• Why: Launchpads act as a layer of protection to investors and a means of growth for developers. Launchpads typically vet a project before offering it on their platform, meaning investors have a layer of safeguarding. For developers, utilizing reputable launchpads like DAO Maker attracts more interest to the project, and therefore more capital.

Simply: Launchpads are a marketplace for investors looking for the next big boom.

A Few Examples:

Let's say you had $20 to invest in an ICO:

• $3,720: Is how much you could have made if you bought Polkadot ICO in May 2020. ICO: $0.29 per coin, ATH: $54.

• $5,360: Would be sitting in your bank account if you bought Avalanche ICO in July 2020. ICO: $0.50, ATH: $134.

• $23,600: Could be in your savings if you bought Solana ICO in March 2020. ICO: $0.22 per coin, ATH: $260.

You get the idea.

ICO's can have yuge returns, and smart investors use launchpads to find the ones worth investing in.

But not all launchpads are created equal.

Upgrade to premium to find out:

1. Which Launchpads to use

2. How to get in early for 100x returns

3. Upcoming ICO's to look out for

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😂 Meme of the Day

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research