❄️Freeze Authority
"Token Account is Frozen"
What is Freeze Authority in Memecoins?
When trading memecoins, it's essential to know about freeze authority. This can be a tricky concept, but here’s a simple breakdown:
Definition:
Freeze authority means the creator of a specific coin has the power to freeze any token at any time.
This can make it look like the coin is still active because others are buying and selling, but you might be unable to do so.
How Does Freeze Authority Work?
Freeze authority allows the coin’s creator to restrict you from moving or selling the token. This can effectively steal your money and create a ‘honey pot’ where your funds are trapped.
Example of Freeze Authority:
Bad Actors: Some developers might abuse this feature by freezing your token account. This means you can’t sell that specific token, even though you can still use other assets in your wallet.
How to Prevent Getting Trapped by Frozen Tokens
To avoid getting caught in a freeze authority trap, follow these steps:
Check for Freeze Authority:
Before buying any coin, use a tool like RugCheck to see if freeze authority is enabled.
If it is enabled, it means the creator can stop you from selling the coin, effectively stealing your money.
Avoid Buying Coins with Freeze Authority:
If you see that freeze authority is enabled, it’s a sign that you should NOT buy the coin.
The creator might use this feature to freeze your tokens and prevent you from selling them.
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