ToxicList: Why should you use it?

6 min readAug 18, 2021

What is ToxicList?

The main idea of ToxicList is to protect emerging projects against interacting with unethical investors interested just in earning huge profits by selling most of their tokens almost immediately after the project’s launch. We call such unethical investors flippers. With ToxicList, every crypto market player has the opportunity to report on investor’s behaviour and check others’ reports. That is why ToxicList is beneficial for all parties involved except for real flippers. More detailed information about the idea behind ToxicList and the project’s vision may be found in its manifesto or the following article.

Shortly, when an investor sells most of the tokens ASAP, he dumps the token’s price (makes a flip) thereby affecting the performance of a project and the confidence of its ethical investors. ToxicList is going to change the status quo by revealing flippers and building crypto investment ethics.

Anyone can report on a flipper in an anonymous, fast, and easy way on the ToxicList website. You just need to indicate a particular address that got tokens from the project and then sold them within 3 days after listing. We have provided a simple step-by-step instruction on how you can report to ToxicList. Only data about investor’s unethical behaviour will be added to the ToxicList Database (DB) after being validated by the ToxicList team.

We strongly assure you that the information on reporters is private and will not be disclosed to any parties.

Currently, ToxicList is collecting reports submitted by projects and their community members.

In this article, we describe the value you get by providing info on the flipping addresses to ToxicList.

Why ToxicList?

Since the main idea of ToxicList is to improve the crypto market environment, our users will be able to check if a crypto address flipped some tokens in the past. The on-chain data (open access) is usually used to validate flipping cases, everyone can easily check it. We are operating only with trusted data. If we verify that a particular investor has been involved in flipping activities at least once, then this flipping case deserves to be indicated on ToxicList.

The information found on the ToxicList crypto addresses database can be used in different ways.

Generally, the ToxicList target audience covers 3 main parties in the crypto arena:

Projects
Projects’ community
Crypto investors

New projects

Avoid dumping of their tokens by flipping investors

When collecting investments, a project gets an investor’s address for the allocation. It can easily check this address on ToxicList for any flipping cases in the past. If the address flipped other tokens before, the new project will likely reject such an investor. As a result, ToxicList helps projects to get healthy investments, protects them from token price dumping, and cultivates ethical behaviour in the crypto investment market.

This in turn can help as a marketing tool for new projects. They can say: “We care about the quality of our investors. Therefore we check them in ToxicList and our project is Toxic-free.” At the same time, a message like this will proactively trigger all project’s investors. They know they are being watched during tokensale and for future investments.

Also the projects who suffered from flippers in the past, can report them to ToxicList. After flipping validation they can show to their community “Look, our investors were flippers, they dumped the price of our tokens and now they are in the ToxicList.” This will ensure their loyalty to the community.

Community members (CM)

Strive to see where their project gets investment from and push it to avoid flippers

Before deciding on participation in a project, a CM can ask its representatives whether there are investors’ addresses present on ToxicList. Upon noticing that a project has not checked its investors, CMs may realize that there may be a dump soon after listing. As a result, CMs can make a reasonable decision on whether to support a project. Since there is a tool now to avoid flippers, CMs can push a project to do so to be sure that it keeps demonstrating strong performance after tokensale.

Also, CMs can see that part of the tokens were distributed from the project’s address to investors addresses (these tokens were not bought on a DEX) and check them in ToxicList. If these addresses sell tokens within the first days of IDO, the community can report to ToxicList. After the flip validation, CM can ask the project about the reason behind its decision to cooperate with unethical investors. Now projects can collaborate with their community in fighting against flippers and even reward them for revealing a flipper.

Investors

Strive to preserve their reputation by avoiding engagement in any flipping cases

As you can realize from the information provided above, projects and their community will force investors to follow the new fair game rules. Therefore ToxicList is very beneficial for trusted investors. The address that holds tokens for a long time is more valuable for a project than the address that can be found on the ToxicList black list of flippers. Investors striving to be accepted by a good project need to take care of their reputation.

ToxicList helps investors to be sure before IDO that there are no flippers among other investors. They just need to ask the project if it’s toxic-free. But even if there will be a flip during tokensale, everyone can make it public and dump the reputation of the flipper. This should make other investors not do the same. As a result, the token is safe from dumps.

Of course, one may argue that flippers can create a new address specifically for every IDO. But, by doing so they are not likely to win the project’s trust. The address without any investment history is a suspicious address, especially when speaking about a big investor.

The list of flippers is only the first core element of the ToxicList project. We are going to provide a list of trusted addresses as well. Generally, we are trying to develop the tool for a crypto market enabling industry players to make the right investment decisions.

Trust and ethical behaviour should become the foundation of the industry’s future development. And ToxicList is here to promote the spread of these values in the industry.

ToxicList is not a law enforcement agency. We will not impose any penalties or restrictions on flippers and their assets. It’s up to a project to decide on whether to work with a particular investor. In this case, addresses with a flipping history will be avoided by projects and, in contrast, the addresses that have been holding tokens for a long time will be accepted.

Conclusion

Overall, ToxicList brings benefits to 3 main market players and promotes the development of ethical investment culture in the industry. ToxicList is a non-commercial project. Our main objective is to secure projects like the ones launched within Hacken Foundation against facing the risks of dumping. ToxicList is the weapon capable of dealing a decisive blow to flippers.

Only together ethical industry players can win the war against unethical investors. Let’s report on flippers at toxiclist.io