What is Synthetify (SNY)? Project and Token Analysis

Coin: Synthetify
Ticker: SNY
Date Deployed: Mon Nov 28, 2022

Origin of the Project

Synthetify is a platform designed to help users manage their synthetic assets efficiently. Built on the Solana blockchain, the Synthetify protocol allows users to create, exchange, and burn synthetic assets by leveraging a decentralized oracle system to provide accurate price data. Trading on the Synthetify exchange happens against a public debt pool, offering nearly limitless liquidity and zero slippage, even during large trades, making it a powerful tool for users seeking easier asset management.

The platform operates by allowing users, known as Stakers, to lock SNY tokens as collateral within smart contracts. These stakers can then mint synthetic USD (xUSD), which can be exchanged for other synthetic assets on the exchange. To unlock their collateral, stakers must burn synthetic tokens equal to their debt value. This innovative system not only enables secure creation and burning of assets but also opens up new opportunities for decentralized trading in the growing DeFi space.

Synthetify Product Features

Synthetic Assets Exchange:

Enables trading synthetic assets without a direct counterparty.
Allows users to trade listed assets even without holding a collateral token.
Features a static, low trading fee of 0.3%, regardless of trade size.
SNY stakers act as counterparties and earn a portion of the platform’s fees.

Collateral Token (SNY):

Serves as collateral for creating synthetic assets on the platform.
Provides fee discounts for swaps and shares in platform fees for SNY holders.
Will enable governance voting for protocol decisions and asset listings in the future.

Should SNY Be in Your Portfolio?

Before you decide whether or not to add SNY 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.

Key Tips to Consider Before Trading or Investing in SNY

Reviewing the whitepaper. This will give detailed insights into the project’s goals, technology, and roadmap. A well-written whitepaper outlines the problem the project aims to solve, how the token functions within its ecosystem, and the long-term vision. If the whitepaper is vague, overly technical without substance, or lacks clear explanations, it can indicate a poorly structured project. Understanding the whitepaper helps traders and investors determine if the project is viable.

It is also important to check the development team’s background and track record because they reveal the credibility, expertise, and past successes of team members. A team with a proven history and good reputation of delivering successful projects in the Solana industry is more likely to build other sustainable projects. An inexperienced team can be a red flag.

Use appropriate risk management strategies when trading or investing in a Solana project to protect your portfolio from significant losses. One key approach is establishing clear entry and exit points before investing. This means deciding in advance the price at which you’ll buy into a project and when you’ll sell, either to lock in profits or minimise losses.

Additionally, diversifying your investments across multiple projects rather than placing all funds into one asset further reduces risk. By spreading your investment across different projects, you minimise the impact of any one project failing or experiencing a significant downturn.

Emotional decisions often lead to poor timing and significant losses. For more stable, long-term gains, avoid the Fear of Missing out (FOMO), which can drive investors to chase hype without proper research, only to experience sudden downturns due to irrational and impulsive decisions.

How to Scan SNY on Solsniffer

Copy the SNY contract address: 4dmKkXNHdgYsXqBHCuMikNQWwVomZURhYvkkX5c4pQ7y
Open the Solsniffer website and paste the address in the search bar.
Within seconds, a detailed analysis of SNY on-chain data is generated.
A security score called Snifscore also ranks the project out of 100 to determine the authenticity of the project.

SNY Tokenomics

Total Supply: 100,000,000
Max Supply: 100,000,000
Market cap: $38,187.80

Snifscore Analysis

Snifscore: 30/100
High-risk factors: 6
Medium-risk factors: 1
Low-risk factors: None

Summary of (5) Contract Passed Indicators

No custom fees applied
Adequate liquidity levels
Sufficient LP providers
Established contract stability
No custom fees applied

Summary of (7) Contract Risks to Consider

Mintable risk detected – High Risk
Private wallet holds significant supply – High Risk
Top 10 wallets hold significant share – High Risk
Top 20 wallets hold significant share – High Risk
Large portion of LP is unlocked – High Risk
Insufficient liquidity – High Risk
Metadata mutability risk – Moderate Risk

Spot if SNY Is a Scam Token

Transparency provides investors with clear insight into the project’s goals, technology and financials. This openness reduces the chances of fraud, promotes accountability, and builds trust with the community.

Team identity can also help identify potential crypto scams because it reveals whether the project’s leaders have credible backgrounds. Anonymous or fake teams raise red flags, while established and reputable individuals on the team attract support from the community.

Scam projects often use hype and flashy marketing to attract investors without offering real value or purpose. They focus on creating excitement rather than addressing a genuine problem or providing a necessary solution. If a project struggles to explain its purpose or the need for its token clearly, it may lack substance, and investors might be scammed down the line.

Staying vigilant and conducting thorough research will help you avoid most crypto scams, as fraudulent projects often exploit investor excitement and lack of information. Additionally, protecting your assets by using wallet security best practices, such as enabling two-factor authentication and storing private keys securely, can reduce your risk.

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