๐ Risk Scoring System
To assess the risk of crypto projects, Sniper Search employs a comprehensive scoring model that normalizes and evaluates six key metrics:
๐ Market Cap โ Measures the projectโs overall valuation.
๐ฐ Trading Volume โ Assesses liquidity and investor activity.
๐ข Social Media โ Analyzes community engagement and sentiment.
๐ฅ Holder Concentration โ Evaluates distribution of token ownership.
๐ฏ Sniper Allocation โ Identifies potential whale activity and early investor behavior.
๐ ๏ธ Developer Wallet Combined โ Tracks developer wallet movements for transparency.
๐๏ธ Scoring Methodology
Normalization: Each metric is converted into a 0โ1 range using logarithmic scaling and linear interpolation to standardize different data types.
Averaging & Scaling: The normalized values are averaged (equal weighting) and scaled to a 0โ100 range, where a higher score represents lower risk.
Data Completeness: The system assigns a completeness score based on available data to ensure transparency in risk assessment.
Risk Interpretation: The final score is categorized into three risk levels:
๐ข Low Risk (Green) โ Strong fundamentals and minimal red flags.
๐ก Moderate Risk (Yellow) โ Some concerns but potential for stability.
๐ด High Risk (Red) โ Significant risks, requiring further due diligence.
By leveraging this scoring system, Sniper Search provides traders with quantifiable, data-driven risk assessments, ensuring informed decision-making in the volatile crypto market.
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