Each day, hundreds of new cryptocurrencies, or altcoins, are released on various blockchain networks such as Ethereum or Binance Smart Chain (BSC). Sadly, a large number of them are launched by scammers looking to defraud unsuspecting investors. The most well-known scam in the cryptocurrency world today is rugpull. The modus operandi of this scam is rather simple. Token developers need to create liquidity on decentralized exchanges such as UniSwap or Pancakeswap to enable investors to buy and sell their tokens instantly. Scamster developers create tokens and add high-value liquidity pools to entice buyers. When investors start purchasing tokens from such fraudulent projects, the value of the liquidity pool increases. The developers then withdraw the liquidity pool’s entire balance and flee, leaving investors with worthless tokens.
By ensuring liquidity lock, token developers eliminate the possibility of perpetrating such scams. The developers waive their withdrawal rights by transferring the liquidity pool or LP tokens to a time-lock smart contract. As a result, a liquidity locker benefits not only investors but also token developers who can establish the project’s legitimacy.
Liquidity locking as a concept has resulted in the development of a number of platforms that provide this functionality. However, all these platforms require costly fees and are extremely cumbersome to use. Mudra’s PancakeSwap Liquidity Locker on BSC is the market’s newest entrant. Despite being the market’s newest liquidity locker, Mudra Liquidity Locker has garnered considerable interest from the cryptocurrency community due to its mission to liberalize the practice of securing liquidity and promoting legitimate tokens. 1000+ projects have locked their liquidity with it within weeks.
It enables you to instantly lock liquidity pool tokens, withdraw them at the lock’s expiration date, and add additional tokens to the lock. If you use Mudra to lock in liquidity, you will pay the lowest fee. Unlike the majority of platforms, it does not compel developers to use their utility tokens. Without incurring additional fees, you can transfer ownership and extend the duration of the lock.
Token creators can generate a verifiable lock certificate in the form of a QR code and share it on the website and social media channels associated with your token. Mudra Liquidity Locker has placed a higher focus on developer experience through a user-friendly interface. Simple but vital features such as the ability to distinguish between a token address and an LP address help to make it an extremely efficient and intuitive platform. Its strength stems from the Mudra ecosystem as a whole, which includes a full suite of products for cryptocurrency developers (BEP20 token generator, PancakeSwap configurator) and investors (token research tool, token discovery tool).
Finally, some thoughts.
The introduction of blockchain networks such as BSC has significantly reduced the barrier to entry for new innovative cryptocurrency projects. As a result, new cryptocurrency investment opportunities for the general public have been created. However, rogue developers have flocked these networks, allowing them to be used to commit scams and steal investors’ money. Liquidity locking is the bare minimum level of assurance that a legitimate project must provide an investor today. Due to its game-changing features and pricing, Mudra Liquidity Locker has posed a significant threat to established platforms such as Unicrypt. Mudra has lowered the bar for cryptocurrency project developers seeking legitimacy and made liquidity locking affordable and accessible to everyone.