FAQ

here are some of the Frequently Asked Questions

What is QuillCheck?

QuillCheck is an extensive due diligence tool tailored for the cryptocurrency market, focusing on preventing users from falling for scam tokens and understanding the risks associated with tokens on Ethereum, BSC, and Polygon blockchains. It analyses token code and market conditions to provide an easy-to-grasp risk score, catering to everyone from beginners and casual investors to experienced crypto enthusiasts and degens.

How does QuillCheck safeguard against DeFi fraud and scams?

QuillCheck proactively combats DeFi fraud and scams by simulating buy and sell transactions for newly listed tokens on supported decentralized exchanges (DEXs). This simulation enables the early detection and flagging of honeypot scams. It also closely monitors tokens with risky ownership permissions, quickly alerting the community via Telegram and Twitter if they turn into scams.

What are ERC-20 and BEP-20 tokens, and why are they important?

ERC-20 and BEP-20 are token standards for Ethereum and Binance Smart Chain, ensuring compatibility across wallets and exchanges, crucial for smooth DeFi transactions. As anyone can create these tokens, potentially with malicious intent, it's vital to use due diligence tools like QuillCheck before investing.

How do I use QuillCheck to analyze a token?

Step 1: Obtain the token's contract address from your wallet or block explorers like Etherscan, Polygonscan, or BSCScan.

Step 2: Paste this contract address into QuillCheck's search field and click the 'Check' button.

Step 3: Review the Risk Report presented by QuillCheck. Initially, you'll see key information such as Token Owner Status, Honeypot Status, and Token Age. For a deeper analysis, scroll down to examine Code-Based Risks and Market-Based Assessments.

What is the significance of ownership and distribution checks in QuillCheck?

Ownership and distribution checks are pivotal in QuillCheck for evaluating token concentration risks and potential abuses of ownership privileges. A high accumulation of tokens in a few hands, particularly with the owner, suggests an increased risk of market manipulation, such as token dumping. Analyzing ownership rights, including minting and transfer pause capabilities, allows users to assess potential misuses of power, a frequent factor in DeFi token scams. These checks offer valuable insights into the equity and integrity of a token's distribution and its governance structure.

Can you explain QuillCheck's risk rating system?

QuillCheck's risk rating system evaluates various aspects of a token, assigning scores based on the severity of potential risks and the presence of positive attributes. Code-based permissions that pose risks are given negative scores, depending on their severity, while the absence of such risky permissions earns positive scores. Similarly, market-based factors like a high number of holders, trading pairs, and liquidity contribute positively to the score.

The severity levels range from ' Critical' to ' Great to have'. 'Critical' indicates a severe risk, 'High' a substantial risk, and 'Medium' a moderate risk. On the positive side, 'Nice to have', 'Good to have', and 'Great to have' denote increasingly desirable attributes with lower risk. The final rating for each token is an aggregate of these scores, providing a comprehensive risk assessment.