The PumpEth token has been turning heads on coinmarketcap.com in the last 24 hours, pumping over 9,700%. From experience, I know many investors would have FOMOed into investing in PumpEth without doing any thorough or proper review of the token.
On this page, we will be doing the right thing by reviewing the Pumpeth token. In the hope of finding out whether it is a legitimate token, worthy of investment or whether is just another dressed-up scam like SQUID token.
If you are already an investor in PumpEth, I advise you read this review with an open mind, I know it’s hard but try. If you are just curious, or maybe you are just going to invest in PumpEth, pay attention to this review.
Before we start, let’s establish an understanding.
I’m not a banker or a financial expert. I will not be held responsible for your financial decisions. This article is just a guide and nothing more, take it as a form of entertainment.
Here’s a brief introduction of the token as seen in coinmarketcap.com
“PumpETH is a rewarding-rebase token to start with. These two things are already interesting and for some could have been considered as a utility but we are working on more things to deliver. To start with, we are working to put in place the swap option on our website for 4 big chains (ETH, BSC, AVAX, POLGYON)”
Pumpeth is a rebase token. That’s the first red flag you need to be aware of. From my experience as a reviewer of tokens, rebase tokens launched on the binance smart chain are dressed up frauds. This is not to say that all rebase tokens are frauds. But the majority of them are. Another point of observation is the Ethereum reward system, that’s a classic shitcoin move. The Pumpeth devs claim to be working to make Pumpeth a cross-chain token. It is important to know that Pumpeth was launched on coin market cap 24 hours ago, therefore it is brand new. Let’s examine Pumpeth’s website.
PumpEth’s website is basic. With the ‘overused dots floating around’ background. This suggests, the devs are unoriginal or lack creativity. The only positive thing about Pumpeth’s website is the SSL certificate. It subtly gives you the courage to continue browsing the website. The description begins this way.
“We are an awesome Rebase Token that offers some Utility (dApps) and also rewards 4% of all the holders with BEP20 ETH. Due to the Rebase functionality, the chart will always look green.”
Most people don’t understand the concept of rebase. They only see the charts go up and desire to be part of it. Dev’s realize this and are using the chart as a marketing tool. This is how the developers of PumpEth described what a rebase token is.
“First of all, DO NOT WORRY if the tokens decrease. The procedure is called “Rebasing”. We decrease the Total Supply to pump the chart! A rebase (or price-elastic) token is designed in a way that the circulating token supply adjusts (increases or decreases) automatically according to a token’s price fluctuations. This expansion and contraction is what we call a rebase mechanism.
Rebase tokens are somewhat akin to stablecoins, in the sense that they both have price targets. However, unlike stablecoins, rebase tokens’ have an elastic supply, meaning the circulating supply adjusts accordingly to supply and demand, without changing the value of the tokens in users’ wallets”
Yeah, I figured that was confusing too. Here’s my explanation of what a rebase token is and I think it is less confusing.
With rebase, tokens charts (the PumpEth token chart you probably saw, that made you want to invest), and the percent it has pumped today, doesn’t mean anything in the grand scheme of things. The only things that matters are the market capitalization and the total supply of the coin. When the market cap goes down, the chart goes up, when the chart goes up, holders sort of lose money. But when the market cap is up and the total supply of the token increases, the chart goes down.
The value of the token increases. While the rebase mechanism burn investors’ token, reducing the number of tokens in investors’ wallet. The whole of PumpEth token is built on this mechanism that confuses investors. I hope I didn’t confuse you the more?
PumpEth claims its buy and sell slippage is 13% and 15%. There’s a live price chart embedded on the website, which I think is a marketing ploy to feed people’s fear of missing out. Dangerous move there.
On why investors should invest in PumpEth. The token claims to have a strong community. That’s not true, this token just launched yesterday, where did they get their strong community from?
The token also claims to be bringing some utility with its native android and IOS DAPP platforms. I’m tired of developers that hurry into making tokens, then later talk about giving the token utility. It is an overplayed script.
Pump Eth’s white paper is an 8-page downloadable pdf. The design in my opinion is chaotic, not easy on the eyes. Most of the info in the white paper are repetitions from the website, which we have covered. So, I will carefully select the few talking points that are absent from the website.
The total supply of Pumpeth is 1 quadrillion. This supply figure isn’t unique. It was distributed in this manner.
Investors are to pay 13% to 15% upon every transaction undertaken on the PumpEth ecosystem. This is how the tax is distributed.
4% is distributed to the Ethereum wallet. That is then used to reward the holders of PumpEth. Another 4% is directed to the marketing wallet (lol). 3% is used to add liquidity to the liquidity pool. While 2% is directed to the ‘ecosystem’ fee wallet.
This is where the robbery occurs. The developers of PumpEth already have slated a whole 6% of the entire supply of the Pumpeth’s on marketing, yet they still charge investors 4%. This is an unfair and immoral behavior, that only criminal minds can conceive.
Market Cap and Liquidity pool
According to poocoin, PumpEth’s market cap is currently at a miserly $916,367. This token is still very new and the market cap will probably still go up. What is surprising is the 1,241,856,000,000 supply of PumpEth on poocoin, while the website and white paper have it at 1 quadrillion. This suggests inconsistency in information.
The liquidity pool is valued at $135,448. 99.8% of the liquidity pool is locked on pink sales. I however could not confirm the liquidity lock time frame. 99.8% locked liquidity is a good one. Pumpeth currently has 3950 holders. There are indications whales are present in the ecosystem.
Developers of PumpEth
Unsurprisingly, the developers of PumpEth token are unknown. This is a big red flag. I agree, not all real and legit projects have doxxed developers, for example, Shiba Inu, monero etc. However, being doxxed goes a long way towards reducing the trust deficit between willing investors in Pumpeth and pumpeth developers.
What Investors or Potential investors are saying about PumpEth
On youtube, many folks are confused and wondering why their tokens are reducing. They are not comfortable with it. These investors are the set of people PumpEth desires to attract. Here are some of the comments
On Twitter, some are calling PumpEth suspicious.
While some are calling it an outright scam.
On telegram, the ‘shillers’ are pretending, it is investors’ fault, investors didn’t spend 60 seconds to read through Pumpeth’s white paper. While the mechanism behind rebases is just to attract investors like them.
Warren Buffet’s general rule to investing is simple. ‘If I don’t understand it, I’m not investing in it’. If you don’t understand the mechanics of rebasing, don’t invest in a rebase token. It’s hard to categorize PumpEth as a scam, yea, they lied in one or two places. But they clearly stated that they are a rebase token. It is not their fault people only look at charts and make an investment decision. If after reading this review, you are advised to confirm the liquidity lock time frame from the developers before you invest in the token.
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