Token Analysis

Overview

The Token Analysis feature in Orama provides a comprehensive assessment of cryptocurrency tokens, offering detailed technical analysis, on-chain metrics, historical performance, and risk evaluation. This feature serves as a crucial tool for investors, traders, and researchers to make informed decisions about token investments and to understand the fundamental characteristics of digital assets.

Purpose

Token analysis gives users a complete picture of a token's profile by:

1. Verifying token authenticity and technical implementation

2. Analyzing on-chain activity and holder distribution

3. Evaluating price performance and market dynamics

4. Identifying potential risks and warning signs

5. Providing comparative metrics against similar tokens

How It Works

When a user submits a token address, Orama performs a multi-faceted analysis through the following steps:

1. Token Validation: Verifies the token exists and retrieves basic metadata

2. On-chain Analysis: Examines blockchain data for activity and holder metrics

3. Market Analysis: Retrieves price and volume data from various sources

4. Risk Assessment: Evaluates potential red flags and security concerns

5. Technical Review: Analyzes the token smart contract and implementation

6. Social Metrics: Gathers social media statistics and mentions

7. Results Integration: Compiles all data into a comprehensive analysis

8. Visualization: Presents the information in an intuitive interface

Key Metrics Analyzed

Basic Token Information

• Token Name & Symbol: Official name and trading symbol

• Blockchain & Standard: Network (e.g., Ethereum, Solana) and token standard (e.g., ERC-20, SPL)

• Contract Address: Verified blockchain address

• Total/Circulating Supply: Total tokens created and currently circulating

• Decimals: Token decimal precision

• Launch Date: When the token was created/deployed

Market Metrics

• Current Price: Latest trading price in USD and BTC

• Market Cap: Total value of circulating supply

• 24h Volume: Trading volume in the last 24 hours

• Price History: Historical price data (1d, 7d, 30d, 1y)

• Price Change: Percentage changes over various timeframes

• Liquidity: Available liquidity in trading pools

• Pair Analysis: Common trading pairs and their volumes

On-chain Metrics

• Transaction Count: Number of token transactions

• Active Addresses: Unique addresses interacting with the token

• Velocity: Rate at which tokens change hands

• Holder Distribution: Breakdown of token holders by size

• Concentration Risk: Analysis of wallet concentration

• Contract Interactions: Smart contract interaction patterns

• Creation Transaction: Original deployment transaction details

Technical Analysis

• Contract Code Analysis: Review of smart contract implementation

• Security Audit Status: External audits and their findings

• Contract Permissions: Owner privileges and permission structure

• Upgradability: Whether the contract can be modified

• Function Analysis: Key functions and their implications

• Token Mechanics: Minting, burning, and transfer restrictions

Risk Indicators

• Concentration Risk: Large holder percentage and implications

• Liquidity Risk: Assessment of liquidity relative to market cap

• Manipulation Risk: Indicators of price or volume manipulation

• Implementation Risk: Technical vulnerabilities or concerns

• Governance Risk: Centralization of control or voting power

• Overall Risk Score: Composite risk evaluation (0-100)

Risk Score Calculation

The overall token risk score is calculated by evaluating multiple weighted factors:

1. Concentration Score (30%): Measures the distribution of token holdings

   • Lower concentration (more distributed) results in lower risk scores

   • High concentration in few wallets increases risk rating

2. Technical Score (25%): Evaluates the token's technical implementation

   • Well-audited, standard implementations receive lower risk scores

   • Custom, unaudited, or problematic code increases risk

3. Liquidity Score (20%): Assesses market liquidity and trading depth

   • Higher liquidity relative to market cap indicates lower risk

   • Low or declining liquidity suggests higher risk

4. Market Score (15%): Analyzes price stability and market behavior

   • Stable, predictable price movements suggest lower risk

   • Extreme volatility or manipulation patterns indicate higher risk

5. Social Score (10%): Examines community engagement and sentiment

   • Strong, engaged community typically indicates lower risk

   • Low engagement or negative sentiment suggests higher risk

Risk Levels

Based on the calculated score (0-100), tokens are classified into risk levels:

Score Range	Risk Level	Description
0-20	Very Low	Exceptional token with strong fundamentals and low risk factors
21-40	Low	Solid token with good metrics and minimal concerns
41-60	Medium	Average token with some areas of potential concern
61-80	High	Significant risk factors detected, caution advised
81-100	Very High	Critical issues identified, extreme caution warranted

User Interface

The Token Analysis interface includes:

1. Input Field: For entering the token contract address

2. Quick Profile: Showing basic token information and current price

3. Risk Assessment Card: Displaying the overall risk score and level

4. Price Chart: Interactive price history visualization

5. Metrics Dashboard: Key performance and health indicators

6. Holder Analysis: Visualizations of holder distribution

7. Transaction Activity: Charts showing recent transaction patterns

8. Technical Overview: Smart contract details and implementation assessment

9. Related Projects: GitHub, social media, and ecosystem connections

10. Similar Tokens: Comparable tokens in the same category

Implementation Details

API Endpoints

The Token Analysis feature uses several dedicated endpoints:

Token Basic Info

GET /api/token/{token_address}

Response Format:

{
  "success": true,
  "data": {
    "name": "Token Name",
    "symbol": "TKN",
    "address": "0x1234...5678",
    "blockchain": "Ethereum",
    "standard": "ERC-20",
    "decimals": 18,
    "total_supply": "1000000000",
    "circulating_supply": "750000000",
    "creation_date": "2023-01-15T00:00:00Z",
    "description": "Token description text",
    "logo_url": "https://example.com/logo.png",
    "website": "https://project-website.com",
    "social_links": {
      "twitter": "https://twitter.com/projectname",
      "telegram": "https://t.me/projectname",
      "discord": "https://discord.gg/projectname"
    }
  }
}

Token Market Data

GET /api/token/{token_address}/market

Response Format:

{
  "success": true,
  "data": {
    "price_usd": "0.12345",
    "price_btc": "0.00000789",
    "market_cap": "92587500",
    "volume_24h": "5678900",
    "price_change": {
      "1h": "1.2",
      "24h": "-3.5",
      "7d": "15.8",
      "30d": "-2.3",
      "1y": "120.5"
    },
    "ath": {
      "price": "0.25678",
      "date": "2023-05-21T00:00:00Z"
    },
    "atl": {
      "price": "0.01234",
      "date": "2023-02-01T00:00:00Z"
    },
    "liquidity": {
      "total_usd": "2500000",
      "major_pairs": [
        {
          "pair": "TKN/USDT",
          "exchange": "Uniswap V3",
          "liquidity": "1200000"
        },
        {
          "pair": "TKN/ETH",
          "exchange": "Uniswap V3",
          "liquidity": "800000"
        }
      ]
    }
  }
}

Token Holders Data

GET /api/token/{token_address}/holders

Response Format:

{
  "success": true,
  "data": {
    "total_holders": 12500,
    "distribution": {
      "top_10": "45.7",
      "top_50": "67.3",
      "top_100": "78.5"
    },
    "concentration_score": 68,
    "holder_categories": {
      "whales": {
        "count": 25,
        "percentage": "52.3"
      },
      "medium": {
        "count": 175,
        "percentage": "26.8"
      },
      "retail": {
        "count": 12300,
        "percentage": "20.9"
      }
    },
    "excluded_addresses": [
      {
        "address": "0xdead...beef",
        "tag": "Burn Address",
        "balance": "250000000"
      },
      {
        "address": "0x9876...5432",
        "tag": "Team Multisig",
        "balance": "100000000"
      }
    ],
    "top_holders": [
      {
        "address": "0xabcd...1234",
        "percentage": "12.5",
        "tag": "Unknown",
        "balance": "93750000"
      }
    ]
  }
}

Token Risk Assessment

GET /api/token/{token_address}/risk

Response Format:

{
  "success": true,
  "data": {
    "risk_score": 45,
    "risk_level": "Medium",
    "component_scores": {
      "concentration": 65,
      "technical": 35,
      "liquidity": 40,
      "market": 30,
      "social": 45
    },
    "risk_factors": [
      {
        "category": "concentration",
        "severity": "high",
        "description": "Top 10 holders control 45.7% of circulating supply"
      },
      {
        "category": "technical",
        "severity": "medium",
        "description": "Contract has privileged functions accessible by owner"
      }
    ],
    "positive_factors": [
      {
        "category": "technical",
        "description": "Contract successfully audited by reputable firm"
      },
      {
        "category": "market",
        "description": "Consistent trading volume across multiple exchanges"
      }
    ]
  }
}

Code Implementation

The Token Analysis feature is implemented across several files:

1. token.php: Main interface file for token analysis

2. api/token_data.php: Backend processing for token data retrieval

3. api/token_risk.php: Risk calculation algorithms

4. api/token_market.php: Market data integration

The implementation includes:

1. Blockchain API integrations (Etherscan, Solscan, etc.)

2. Price data APIs (CoinGecko, etc.)

3. Custom on-chain data analysis

4. Smart contract scanning functionality

5. Visualization components for data presentation

Error Handling

Common error scenarios include:

• Invalid token address

• Token not found on specified blockchain

• API rate limiting from external services

• Blockchain node connectivity issues

• Incompatible token standards

Use Cases

For Investors

• Performing due diligence before investment

• Monitoring existing token investments

• Comparing similar tokens within a category

• Identifying potential red flags

For Traders

• Analyzing market conditions and liquidity

• Identifying market trends and patterns

• Assessing entry and exit opportunities

• Managing risk through comprehensive data

For Projects

• Demonstrating transparency to their community

• Identifying areas for improvement

• Comparing their token metrics to competitors

• Addressing potential concerns proactively

Limitations

• External Data Dependency: Analysis relies on data from multiple external sources

• Market Volatility: Rapid market changes may not be reflected immediately

• Blockchain Limitations: Some metrics may be unavailable on certain blockchains

• New Tokens: Recently launched tokens may have limited historical data

• Technical Limitations: Some custom token implementations may not be fully analyzable

Best Practices

For Users

• Always combine token analysis with broader research

• Consider the context of the project and its goals

• Compare tokens within the same category or sector

• Monitor changes in key metrics over time

• Pay particular attention to risk factors and outliers

For Projects

• Implement standard token contracts with audits

• Provide clear documentation for custom implementations

• Consider token distribution strategies carefully

• Maintain transparent communication about token mechanics

• Address risk factors proactively

Technical Architecture

The Token Analysis feature is built on:

1. Data Collection Layer: Integrations with multiple blockchain APIs and market data sources

2. Processing Layer: Algorithms for analyzing raw data and calculating metrics

3. Risk Assessment Engine: Custom risk evaluation models

4. Caching System: Performance optimization through intelligent data caching

5. Visualization Framework: Interactive charts and graphs for data presentation

Future Enhancements

Planned improvements to the Token Analysis feature include:

1. Enhanced Smart Contract Analysis: Deeper technical evaluation of token contracts

2. Cross-Chain Analytics: Expanded support for tokens across different blockchains

3. Predictive Analytics: ML-based predictions for token performance

4. Custom Alerts: User-defined monitoring and notifications

5. Expanded Comparison Tools: Advanced token comparison features

6. DeFi Integration: Analysis of token usage in DeFi protocols

FAQs

Q: How often is token data updated?

A: Basic metrics are updated every 5 minutes, with more complex analyses updated hourly or daily depending on the metric type.

Q: Can I analyze tokens on any blockchain?

A: Currently, Orama supports tokens on Ethereum, Binance Smart Chain, Polygon, Solana, and Avalanche. Support for additional chains is being added regularly.

Q: How is the risk score calculated?

A: The risk score incorporates multiple factors including holder concentration, liquidity depth, technical implementation, market behavior, and social metrics. Each factor is weighted based on its relative importance.

Q: Why might my token show a high risk score?

A: High risk scores typically result from concentrated token holdings, limited liquidity, unusual market activity, or technical concerns with the smart contract implementation.

Q: How accurate is the holder analysis?

A: Holder analysis is based on current on-chain data, but may not account for individuals controlling multiple addresses or tokens held on centralized exchanges.

Q: Can I export the token analysis data?

A: Yes, premium users can export token analysis data in CSV or JSON formats for further analysis.

Q: How does Orama handle newly created tokens?

A: New tokens can be analyzed immediately, though some metrics that rely on historical data may be limited until sufficient data is available.

Q: Are stablecoins analyzed differently?

A: Yes, stablecoins have specialized metrics and risk factors relevant to their specific purpose and mechanisms, such as peg stability and backing.