Liquidity locking is one way to do this because it signals the trustworthiness of a project. Many new launches on pumpfun, dextools and the likes are traps waiting for their unsuspecting victims because shady developers like to shy away from this issue of locking. Sometimes it may show that liquidity is locked but shady smart contracts are running stuff😂😂

Sounds scary right?

This is why every project should lock their liquidity with clean smart contracts.

Why?

Let's dig deeper.

So what is liquidity locking?

When developers add tokens to liquidity pools, they will receive in exchange, liquidity provider tokens known as LP tokens.

These are like digital cheque books that can access the liquidity in the pool, but there is a problem!

What you may ask?

The issue is that the dev at any time can use these LP tokens to withdraw from the pool just as you can use your cheque book or bank cards to withdraw from your traditional bank accounts 

Liquidity locking involves keeping these LP tokens in immutable smart contracts for a set length of time.

These smart contracts are called liquidity lockers.

Liquidity lockers allow Devs to preemptively lock away a set amount of liquidity thereby preventing them from being able to withdraw from the same pool before the set time.

Again as an investor, check unlock dates to avoid buying when the lock duration is about elapsing.

Why should any developer care about locking their tokens?

The point of agreeing to do this locking as a dev is simple,

When investors see that the majority of the liquidity is locked during the presale stage or afterwards, they will be confident buying your token.

So, it is compulsory if you know that you are not a crook😂😂

Some Devs sometimes may choose to create their own locks meaning they may lock tokens in self created time lock smart contracts. 

This is a red flag as investors will definitely ignore your token.

accountable at least for once and use reputable third party lockers instead.

Finally, what percentage of the tokens should be locked?

If it is not 100%, you might be walking into a rug-pull so be very careful before you buy that memecoin on pumpfun and similar platforms.