Freeze Authority
Freeze Authority should be disabled
When trading memecoins, understanding the concept of freeze authority is crucial. Here’s an overview to clarify this key term:
What is Freeze Authority?
Freeze authority grants the creator of a coin the ability to freeze any token at will. This might cause the token to appear active, as others continue trading, but you could be restricted from doing so.
How Freeze Authority Works?
The token creator can use freeze authority to prevent you from transferring or selling the token, essentially locking your funds in a ‘honey pot’ scenario.
Developers might exploit this by freezing your token, making it impossible for you to sell, while other assets in your wallet remain accessible.
Steps to Avoid Freeze Authority Traps
- Always use a verification tool like rugcheck to determine if freeze authority is active on a coin.
- If freeze authority is enabled, it indicates the creator of the coin can freeze your tokens.
- Avoid purchasing coins where freeze authority is active to prevent scenarios where you’re unable to sell your tokens.
Our New Pairs monitor on all our bots will show you whether a token has freeze authority enabled or disabled.