CREATE LOCK

The term "create lock" is a period of time during which a percentage of the total supply of tokens cannot be transacted or traded. These lockups are used to prevent rug pulls and to ensure the long-term stability of a specific asset.

Furthermore, after the private sale, early investors may be able to sell their tokens at a higher price and recoup their initial investment. These factors may cause the Token's price to plummet before the project's final products and utilities are released. To maintain the value of the Token for the end user, it is always prudent to create a lock for your cryptocurrency.

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Moving on to LP Tokens, the Liquidity pool is a fund pool created by developers for investors to buy and sell instantly. Without this pool, investors must wait for someone to match their buy or sell order, with no assurance that the trade will be completed at all. Liquidity is created by pooling the new token with an established token, such as ETH or BNB, and receiving LP tokens in exchange. If the liquidity is unlocked, token developers can easily rug-pull the entire project. When investors start purchasing tokens from the exchange, the liquidity pool begins to accumulate more coins such as ETH or BNB. As a result, developers may withdraw liquidity from the exchange and escape with it. Once the LP tokens are locked for a set period of time, the developers will be unable to retrieve liquidity funds unless they own the LP tokens.

Creating a lock for the tokens provides investors with confidence to invest their capital without fear in various projects. It also gives them assurance that the developers will not steal their money. Also, because the crypto space is rife with scams, this is a technique that can really differentiate a fake coin from a genuine one.