๐Ÿ“Š Risk Scoring System

To assess the risk of crypto projects, Sniper Search employs a comprehensive scoring model that normalizes and evaluates six key metrics:

  • ๐Ÿ“ˆ Market Cap โ€“ Measures the projectโ€™s overall valuation.

  • ๐Ÿ’ฐ Trading Volume โ€“ Assesses liquidity and investor activity.

  • ๐Ÿ“ข Social Media โ€“ Analyzes community engagement and sentiment.

  • ๐Ÿ‘ฅ Holder Concentration โ€“ Evaluates distribution of token ownership.

  • ๐ŸŽฏ Sniper Allocation โ€“ Identifies potential whale activity and early investor behavior.

  • ๐Ÿ› ๏ธ Developer Wallet Combined โ€“ Tracks developer wallet movements for transparency.

๐Ÿ—๏ธ Scoring Methodology

  1. Normalization: Each metric is converted into a 0โ€“1 range using logarithmic scaling and linear interpolation to standardize different data types.

  2. Averaging & Scaling: The normalized values are averaged (equal weighting) and scaled to a 0โ€“100 range, where a higher score represents lower risk.

  3. Data Completeness: The system assigns a completeness score based on available data to ensure transparency in risk assessment.

  4. Risk Interpretation: The final score is categorized into three risk levels:

    • ๐ŸŸข Low Risk (Green) โ€“ Strong fundamentals and minimal red flags.

    • ๐ŸŸก Moderate Risk (Yellow) โ€“ Some concerns but potential for stability.

    • ๐Ÿ”ด 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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