In the Web3 space, the exit strategies of the project party have become increasingly complex and difficult to detect. As an investor, it is crucial to remain cautious when making investment decisions.

An effective risk assessment method is to use blockchain analysis tools to examine the distribution of token holdings. This approach can quickly reveal the complete picture of token ownership, providing valuable insights for investors.

Recently, while evaluating an emerging project, I found that the top 10 wallet addresses hold over 70% of the tokens. This highly concentrated holding structure immediately raised alarms, leading me to decide not to participate in the project.

By analyzing the position distribution, we can obtain the following key information:
1. Identify large holders that may be associated with the project party.
2. Assess the degree of concentration of token holdings and its potential impact on the market.
3. Understand the actual token distribution situation, rather than just relying on the description in the white paper.

Based on experience, I recommend using the following criteria to quickly assess project risk:
- If the position concentration exceeds 20%, this is usually a high-risk signal.
- If a large portion of the holdings is concentrated in a few addresses, it may indicate that insiders could sell at any time.

Before investing in any new project, it is worth taking a few seconds to check the token holding distribution. This simple step can help you avoid most high-risk projects, thereby protecting your investment.

Remember, in the cryptocurrency market, information is power. By utilizing these tools and strategies, you can make more informed investment decisions and reduce the risk of being deceived by bad projects.