strong sell

Parabolic AI Token Risks Highlighted by High Ownership Concentration

Parabolic functions as the utility token within the Parabolic Finance AI-enabled DeFi platform. Its market capitalization stands at approximately $74,890, with a liquidity pool worth about $27,650, representing roughly 36.92% of its total assets. The current trading price is approximately $0.00007506 per token. From a security standpoint, the token shows no mutable metadata or mint and freeze authorities, which is positive for stability. However, the token has not burned any liquidity pool shares and has a high concentration of ownership, with 82% held by a single entity and top holders including AARd…aoPu holding 81.54% and Raydium holding the remaining 18.46%, indicating centralization risks. The score assigned to this token is "Bad" (1), suggesting high risk, and the ownership distribution is heavily skewed, which could lead to market manipulation or sudden dumps. The platform claims tools like new pools, new tokens, and LP burns, but the overall risk profile remains concerning due to high holder concentration and a dubious security stance. Given these factors, this token appears to carry significant risks with limited decentralization and security features, making it a candidate for cautious observation rather than investment.

Parabolic Finance AI-Powered DeFi Token Faces High Risks

The high ownership concentration, lack of burned liquidity pool tokens, and a poor security profile raise concerns about the stability and safety of this token. Investors should be wary of potential manipulative behaviors or sudden market movements driven by the largest holder. While the platform suggests active development with new pools and tokens, the risk factors overshadow these features. Approach with caution and consider avoiding or minimizing exposure to this token until its risk profile improves.

Source available for registered users Sign Up Free

AI Analysis

Analyzing the provided data on Parabolic, a DeFi platform token, reveals several red flags that warrant cautious attention. The market cap is relatively small at around $74,890, indicating a niche or ...

AI Recommendation

Given the high ownership concentration and security concerns associated with Parabolic, the most prudent course of action is to avoid or refrain from investing in this token at present. The risk of ma...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

You might also be interested in: