📊 Risk Scoring System
To assess the risk of crypto projects, Sniper Search employs a comprehensive scoring model that normalizes and evaluates six key metrics:
📈 Market Cap – Measures the project’s overall valuation.
💰 Trading Volume – Assesses liquidity and investor activity.
📢 Social Media – Analyzes community engagement and sentiment.
👥 Holder Concentration – Evaluates distribution of token ownership.
🎯 Sniper Allocation – Identifies potential whale activity and early investor behavior.
🛠️ Developer Wallet Combined – Tracks developer wallet movements for transparency.
🏗️ Scoring Methodology
Normalization: Each metric is converted into a 0–1 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 0–100 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:
🟢 Low Risk (Green) – Strong fundamentals and minimal red flags.
🟡 Moderate Risk (Yellow) – Some concerns but potential for stability.
🔴 High Risk (Red) – 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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