How To Vet a Token’s Holder Distribution with SolScan and BaseScan

Key Points

1. SolScan and BaseScan provide on-chain data showing token supply, number of holders, and top holders, helping identify centralized distributions.

2. High whale concentration (e.g., 1-2 wallets holding 90% of supply) can lead to price manipulation, making it a significant risk factor.

3. Dev/team wallets and vesting schedules should be monitored for unexpected large transfers, which may indicate potential dumping.

4. Suspicious patterns include sudden large transfers, identical balances across multiple wallets, and new wallets accumulating tokens rapidly.

5. A decentralized token should have a broad distribution of holders, with no single wallet holding an extreme share (e.g., top 10 holders owning over 50-60% is considered highly centralized).