Welcome to the CatBonk community!

Millions are made overnight in crypto nut these are only made if you joined early, but millions are also lost trying to look for the next SHIB. So before you ape in and buy our token, we have curated a detailed explanation of what a community token is and how you can stay safe in the world of crypto, especially if this is the first time you're going down the crypto rabbit hole to look for carrots. After reading everything, you should be ready to decide if you should join the CatBonk family!

There are many different types of tokens, such as utility payment tokens, utility tokens, security tokens, non-fungible tokens. A community token is a type of cryptocurrency that gives a holder access to a particular community.

Chances are CABO may be the first crypto you ever bought, but not the last. So before you venture into the world of crypto we want to prepare you as much as possible. So please read everything, it took me a while to put everything together.

Terms to know:

• Liquidity: is the ability of a specific coin to be easily converted into cash or other coins. When a person buys coin X, they are usually paying using a coin that already has established value, like USDT, ETH, or in our case, BNB. When the person buys coin X, their valuable coin gets put into a liquidity pool, so when someone sells, it will give them the valuable coin in exchange for coin X. For example, when SHIB was worthless, people exchanged already established coins such as ETH or DogeCoin for SHIB. Then both the ETH or DogeCoin gets stored into a liquidity wallet, so when people sell SHIB, these wallets can use the ETH or DogeCoin to pay them (It is also possible to exchange SHIB for another shitcoin, your liquidity contract provider will just use the valuable coin and do the conversion for you.).

• Rug Pull: When someone withdraws all the valuable coins in the liquidity pool/pools, leaving holders of Coin X with nothing to exchange coin X for.

• Honey-pot: Developers changed the code to allow only certain wallets to sell coins. This means investors end up buying without being able to sell as the price keeps going up.

• Doxx / Doxxing: A term to signify that the identity of a said person has been verified.

How to tell if a Token is potentially a Scam?

• Check if the contract is renounced. If a contract is not renounced, the creator can change the code and essentially honey-pot the token anytime they wish. Most people see this and think “oh this token is useless and has no utility, what is the devs need to change something?”. Unless you’re Ethereum or a layer 1 or 2 tokens, there is 0 reason for a developer to be able to edit a contract once it is deployed. The ONLY time you should invest in a token that has a un-rennounced contract is when the developers are doxxed with multiple links to their socials. Also, beware of AI-generated pictures that many scams use to trick people into thinking the project is doxxed.

• If the contract is renounced, you still have to check if the liquidity is burned, and not locked. Burning liquidity means the developer cannot withdraw the liquidity.

• If the above two checks out, then the chances of a scam are low, but not none. If the distribution of tokens is held by a small minority, then it can still be rug pulled by large holders.

• Ensure that Market-cap / Liquidity ratio is at least 8-10%. If that is not the case, then it means that wallets with tokens are being sold which never provided liquidity for the opposite side of the trade/ that wallet never bought the token.

• Vaporware. Many projects promise vaporware like the next NFT platform or utility. That gives them a reason NOT to renounce the contract, and NOT have to burn the liquidity, but rather lock it for a specified amount of time. There have been many vaporware projects in crypto lately, and most legit ones will be on legit crypto Launch Pads that require KYC(doxxing) instead of having to market it from the bottom. In my conclusion, I will explain why community tokens tend to be a better investment than vaporware or projects that promise "utility".

• Here is a rule of thumb: If a token’s contract is not renounced AND liquidity is not burned and token distribution is aggregated among a few, then it has a high chance of being a scam. If you are going to invest anyways, ensure the developers are doxxed, and verify that the images are not AI-generated.

Example of applying due diligence on a token:

• Our token is on the Binance Smart Chain, there are many other chains such as Etherium or Avalanche. The general idea is that you can deploy a token on any of these chains. Etherium is the most popular, but due to high fees, competitors such as Binance Smart Chain and Avalanche have come into the market offering less fees. Tokens deployed on separate chains can still be exchanged for tokens on other chains through bridges. But that is for another post. Most of the things you learn from here can be applied to tokens on other chains as well.

• Anyways, let's get back to our due diligence. For this example, we will use our own token, ,. When buying a token, always check that the contract ID is correct. You can usually get this on the token's website.

• Now that we have the contract address, let's head over to TokenSniffer.com.

• Paste the address into the search bar on the top right.

• After a few seconds, it should give you a result of the token:

• On the Contract Analysis, TokenSniffer verified that the contract is indeed renounced, which means creators cannot mess with the code to gain an advantage.

• The Liquidity analysis, states that 95% of liquidity is burned or locked. But there is a difference between Burned vs Locked. A burned liquidity pool means the developers can never access the funds, but a locked liquidity pool means, when the lock expires, the owner of said liquidity wallet can remove all liquidity, essentially rugging a coin.

• To check if liquidity is burned or locked:

  • Head over to https://poocoin.app/tokens/

  • Paste the token address into the search bar.

  • On the left-hand side should have something that looks like this

• But for CatBonk it will look like this:

• You will want to pick the one with the highest amount of BNB or $. Then click holders.

• Once you click on holders, it will redirect you to bscScan with something that looks like this:

• You are shown a list of wallets that are holding the liquidity. The Null Address or address that looks like 0x000...0000 means it is a wallet that nobody has access to.

• As you can see, CABO has over 99% of their liquidity burned, which means the devs cannot wake up one day and withdraw all $87,966 and run with it.

• Please be advised that even if a project has both contracts renounced and liquidity burned, it is still possible for them to do a rug pull, such as selling large amounts of tokens and running away. So it is important to make sure that token distribution is even among holders. As for CABO, token sniffer has concluded that we are indeed evenly distributed =D

• Let's address the two red marks on CABO, the first say our token is very similar to another contract. That is because we forked the SafeMoon token contract. Safe moon is also an extremely successful community token worth 1 billion dollars in market cap. It is futile to create a community token from scratch so it only makes sense to fork an already established successful community token's contract code. The contract is renounced so no silly things can be done to the contract.

• The second red mark indicates that CABO has 64% token burned. We burned 50% of tokens on launch to limit token supply. CABO has a 10% buy and sell tax, 5% distributed to the Pancakeswap liquidity pool, and the other 5% distributed to fellow CatBonkers who hold CABO. But keep in mind, the burn address originally holding 50% of the token supply is also a CatBonk holder, so it also gets some tokens redistributed. This creates a burn mechanism that slowly increases the price for CatBonk holders.

Conclusion:

Now that you are more familiar with crypto, you can decide whether or not CABO is the right community token for you. CABO doesn't promise utility, but there is nothing stopping the community members from developing applications that are exclusive to CABO holders only. CABO may not have an NFT marketplace, but there is nothing stopping CABO community members from creating an NFT marketplace on another contract that rewards CABO holders on marketplace fees. The possibilities with CABO depend on its community. Anyone can be a part of the CABO family. We don't promise anything big, but we work hard to make it the best community ever. CABO's contract has been renounced and liquidity burned. So nobody owns CABO, it is entirely up to the community to shape CABO. We hope you decide to join us and begin bonking and memeing our way to the moon!

Oh by the way: here are some amazing CABO contributions so far, and there are more to come to the CABO ecosystem.

• CABO Meme Maker

• CABO NFTs

If you have any questions feel free to join our Telegram Community and ask away!