What is Jupiter (JUP)? Project and Token Analysis

Coin: Jupiter
Ticker: JUP
Date Deployed: Tues Jan 30, 2024

Origin of the Project

Jupiter is a leading platform in Decentralized Finance (DeFi), operating on the Solana blockchain, and has recently gained recognition as the most popular DEX aggregator globally. Launched in October 2021, Jupiter initially focused on aggregating liquidity for token swaps, similar to platforms on Ethereum. As a liquidity aggregator, it pools resources to facilitate more efficient and effective token swaps, perpetual futures, and the management of decentralized stablecoins, ensuring minimal slippage and faster execution by drawing liquidity from multiple DEXs.

Over time, Jupiter has expanded its offerings beyond token swaps to include GMX-style perpetual futures, broadening its utility within the DeFi ecosystem. As Solana’s first on-chain swap aggregator, Jupiter routes DeFi transactions to optimize trade outcomes. While the platform itself runs for free, it generates revenue by charging fees on dollar-cost averaging (DCA) orders, perpetual swaps, and limit orders on its exchange. This combination of services has solidified Jupiter’s role as a key player in the DeFi space, providing users with a comprehensive solution for their trading and liquidity needs.

Products

Token Swaps:

Facilitates swapping of a wide range of Solana-based tokens, including SOL, USDC, BTC, and ETH.
Optimized to provide the most efficient trading routes, ensuring competitive swap rates.

Limit Orders:

Supports limit orders, allowing traders to set specific price points for trade execution.
Offers a feature typically available only on centralized exchanges, enhancing trading precision.

Cross-Chain Bridging:

Enables the bridging of assets across different blockchain networks, including Ethereum and Binance Smart Chain.
Provides flexibility for more advanced trading strategies by supporting cross-chain transactions.

Should JUP Be in Your Portfolio?

Before you decide whether or not to add JUP to your portfolio, click here to scan the contract on Solsniffer. Solsniffer is the number one blockchain intelligence tool to detect security risks on Solana. Security risk analysis on Solana has never been easier, make sure to be aware of potential DeFi wallet scams and other crypto security concerns before investing.

Due Diligence Tips Before Investing or Trading JUP

Analyzing JUP as a token is important for understanding its potential. Review its whitepaper, community engagement, development team, and long-term roadmap. Is the project solving a real problem and has a clear plan for the token in its ecosystem?

Perform in-depth research before trading any Solana-related project, including JUP. Understanding the project’s whitepaper, the use case, and the founding team’s goals will give you insight into the coin’s potential.

The orderbook can leave clues too, when there are more buy orders than sell orders, JUP’s price is likely to rise, while an excess of sell orders could lead to a price drop. It can also help identify past market manipulation.

Develop a Safe Trading Strategy

Having a structured trading strategy prevents making emotional mistakes. If you cover multiple aspects, such as considering market conditions, clear trading goals, and determining entry and exit points, it can improve your chances of success. Your risk tolerance can make a great plan if you follow it and if the market agrees with your strategy.

In crypto, it’s easy to get caught up in the excitement and make impulsive decisions, especially when seeing how many others are making loads of profits. Avoid rushing into buying JUP during a price pump, as a correction can follow.

An effective risk management strategy is a great differentiator as a trader, and that includes JUP. Use stop-loss and take-profit orders to limit losses and lock in profits automatically. Also, position-sizing is smart to not risk too much of your capital on a single trade, protecting your portfolio from significant losses.

How to Scan JUP on Solsniffer

Copy the JUP contract address: JUPyiwrYJFskUPiHa7hkeR8VUtAeFoSYbKedZNsDvCN
Open the Solsniffer website and paste the address in the search bar.
Within seconds, a detailed analysis of JUP on-chain data is generated.
A security score called Snifscore also ranks the project out of 100 to determine the authenticity of the project.

JUP Tokenomics

Total Supply: 10,000,000,000
Max Supply: 10,000,000,000
Market cap: $1,015,282,510

Snifscore Analysis

Snifscore: 78/100
High-risk factors: 3
Medium-risk factors: 1
Low-risk factors: None

Summary of (5) Contract Passed Indicators

No concerning metadata found
No permanent control risk
Sufficient liquidity confirmed
No auto-freeze risk
No transferability risk

Summary of (7) Contract Risks to Consider

Private wallet holds significant supply – High Risk
Top 10 wallets hold significant share – High Risk
Top 20 wallets hold significant share – High Risk
Metadata mutability risk – Moderate Risk

Find Out if JUP Is a Fraudulent Token

Detecting a scam project requires a combination of caution, research, and vigilance. Fraudsters come up with numerous ways to trick investors, staying awake to the warning signs before falling victim.

One of the first red flags is an offer that guarantees high returns with little to no risk. Rug pulls are the most common scam at the moment, the project creators build hype around a new Solana project and then disappear with the profits. If the team of a project stops providing updates, it could be a sign of trouble.

A few tips to protect yourself is to research the team behind a project, see how well they execute their roadmap, use secure wallets, enable 2FA and avoid giving your personal data to social media giveaways.