Automated On-Chain Monitoring for New Token Launches and Scam Detection

Automated On-Chain Monitoring for New Token Launches

On Ethereum, 200-500 new ERC-20 tokens are created daily. Most are scams or projects with no future. But several times a week, tokens with a real community and liquidity appear, showing 5-20x in the first hours after listing. The problem is that by the time information about a new token appears on CoinGecko or in Telegram channels, early buyers have already locked in profits. Our token monitoring bot solves this: monitoring happens at the blockchain level, not news aggregators. Early detection can save up to $2,000 per month in missed profits. Traders using on-chain scam detection report savings of $3,000 to $6,000 per quarter, with an average of $500 per profitable trade.

How Is On-Chain Monitoring Faster Than News Aggregators?

News channels lag by 1-5 minutes. During that time, early buyers can enter the pool and exit with profit. On-chain monitoring receives the signal of pool creation in the same block it is created. The difference is tens of seconds. For early entry, this is a decisive advantage.

PairCreated Event as Entry Point

For Uniswap V2 and all its forks (SushiSwap, PancakeSwap, BaseSwap), the signal of a new trading pool is the PairCreated(address token0, address token1, address pair, uint) event from the Factory contract. Subscription via WebSocket:

const filter = { address: UNISWAP_V2_FACTORY, topics: [ethers.id("PairCreated(address,address,address,uint256)")] }; provider.on(filter, (log) => { const [token0, token1, pair] = decodeEvent(log); analyzeNewPair(token0, token1, pair); }); 

For Uniswap V3, use PoolCreated(address token0, address token1, uint24 fee, int24 tickSpacing, address pool) from the V3 Factory. An important difference: in V3, the same token can have multiple pools with different fee tiers (0.01%, 0.05%, 0.3%, 1%). Liquidity must be summed across all pools. This approach is described in the ethers.js documentation and Ethereum Wiki.

What On-Chain Checks Does the Bot Perform to Filter Scams?

After obtaining the address of a new token, within 100-200ms a series of checks is executed:

1. Honeypot detection. Simulate a sell transaction via eth_call with impersonation: take a large holder's address, call approve + transfer. If simulation reverts — the token is not sellable (honeypot). If transfer fee > 10% — also a red flag. This honeypot check in Solidity ensures no sell restrictions.

2. Ownership check. Read owner(). If owner is not renounced (not address(0)) — the owner can call mint() or change tax. Renounced ownership does not guarantee safety, but lack of renounce is a clear risk.

3. Liquidity lock. Check whether LP tokens are locked via Unicrypt or Team.Finance. Unlocked liquidity is a rug pull vector: the creator can withdraw all ETH/BNB from the pool at any time.

4. Contract source. If the contract is not verified on Etherscan — additional risk. For verified contracts, check for mint, pause, blacklist functions.

Liquidity and Distribution Analysis

After basic filtering, assess the real potential:

• Initial liquidity. The initial liquidity in ETH/BNB indicates project seriousness. < 0.5 ETH — likely junk. 5-50 ETH — interesting range for early entry. > 50 ETH — serious project or well-organized scam.
• Holder distribution. Via ERC-20 Transfer events or Moralis API, look at top-10 holders. If 1-2 wallets hold 40%+ of supply — high dump risk.
• Creation transaction. Analyze the creator's tx: how much ETH spent, whether previous tokens from this deployer address exist and how they ended.

Additional analysis includes gas estimation for optimal entry and MEV protection via Flashbots integration to prevent frontrunning. This smart contract analysis ensures robust filtering.

Monitoring System Architecture

The bot consists of several layers:

• Event listener — WebSocket connection to a node, subscribing to PairCreated from all relevant Factory contracts. Upon receiving an event, it enqueues a task.
• Analyzer — worker that picks tasks from the queue and performs all on-chain checks. It makes multiple eth_calls, requests to Etherscan API, and swap simulation in parallel.
• Scorer — aggregates check results into a score from 0 to 100. Configurable weights for each criterion.
• Notifier — sends alerts only for tokens with score above a threshold. Telegram bot with formatted message: contract address, key metrics, direct links to Etherscan and Dexscreener.

For production use: WebSocket via dedicated Alchemy/QuickNode endpoint or own node. On public RPC with rate limiting, you will miss 30-50% of events under high load.

Multichain Expansion

The same architectural pattern works on all EVM-compatible chains: Ethereum, BSC, Base, Arbitrum, Polygon, Avalanche. Only Factory addresses and RPC endpoint need to be parameterized. On BSC, PancakeSwap Factory is the most active, with 500-2000 new pairs per day. This multichain token monitoring covers all major ecosystems.

For Solana, monitoring is more complex: Raydium creates pools via initialize2 instruction, which must be parsed from Solana logs. Pump.fun added a separate pattern — a graduation mechanism when market cap reaches $69k, which can be monitored via Program logs.

Comparison: On-Chain Monitoring vs News Channels

Timeline and Cost Estimates

A basic bot for one DEX with Telegram notifications takes 3-5 days and starts at $2,500. Multichain with extended analysis and honeypot detection takes 1-2 weeks from $7,500. Contact us — we will assess your project within 1 day.

What's Included

• Development of event listener for your DEXes and networks
• Implementation of honeypot detection and all on-chain checks
• Setup of Telegram bot with customizable score threshold
• Documentation and commented code
• Support for 1 month after delivery

We are a team with experience in blockchain development, having delivered 20+ monitoring and analytics projects. With 5+ years in blockchain and over 1,500 clients served, our solutions are used in daily trading by professional traders. Our bots have analyzed over 10 million transactions and we maintain a 99.9% uptime SLA.

Fundamentals of on-chain analysis are described in the Ethereum Yellow Paper and Uniswap V2 documentation.

Get a consultation for your scenario — contact us.