The partnership with Covalent will bring more transparency and anti-scam measures to token sales facilitated on the Polkastarter Ecosystem. Covalent brings rich data from the blockchain to inform investors about tokens, token projects, transactions and historical data of crypto-assets and wallets. Should token sale projects choose to use these tools, they will be able to see if wallets have been used for illegal purposes such as money laundering and other suspicious activities. Additionally, token sale projects can link the team’s identifying data to their token sale pools to boost trust and transparency to potential buyers.
Covalent’s ability to provide granular, historical per wallet data will allow token sale and swap participants to know who they are interacting with. This type of transparency will build trust in the network and create a safe environment for traders and investors of all kinds.
Covalent’s technology will allow Polkastarter token pool creators and participants to check the legitimacy of token contracts using a wide variety of heuristics and analytics:
Token contract age
Proxy patterns (red flag for potential rug pulls)
Blacklists, Scams and other warning flags
Curated token lists
Token contract verification
Transaction volume in the last day, week, month, year
All of this data will be available through Covalent’s tools to allow for token pool creators and participants to choose to use in order to augment trust and transparency in sales and swaps.