Scams, rug pulls and token security: quiz

6 questions. Score 70% or more to pass. Not ready? Study the course first.

A token with an active freeze authority can: Only be traded on OpenBook Have holder accounts frozen so they cannot sell Never change supply Be redeemed for SOL

If a token's mint authority has NOT been revoked, what is the biggest risk to holders? The developer can create new tokens at will, diluting your holdings' value The token cannot be traded on any exchange Transaction fees will increase automatically The token's name and symbol can never be changed

Why do security checkers treat 'mint authority: revoked' as a good sign? It means no one can ever mint additional tokens, capping the supply permanently It guarantees the token will increase in price It proves the liquidity pool is locked forever It means the freeze authority is also automatically revoked

A project's LP tokens are locked in a time-locked contract for 6 months. What does this actually guarantee? The liquidity cannot be withdrawn by the team until the lock expires, reducing near-term rug pull risk The token price cannot drop during that period The mint authority is automatically revoked as well Holders will receive rewards after 6 months

Which scenario describes a classic 'rug pull' using liquidity? Developers suddenly withdraw all the paired liquidity from the pool, crashing the token's price to near zero The team burns their own token supply The token's freeze authority is used to lock a scammer's wallet A community vote changes the token's trading fee

You hold a token whose freeze authority is still active and controlled by an anonymous team. What could they do? Freeze your token account so you cannot sell or transfer your tokens Mint unlimited new liquidity pool tokens Force your wallet to swap tokens automatically Change the blockchain the token runs on