Opportunities on the blockchain are decentralized making it an open basket for both the bad eggs and the good ones. The blockchain dating back to 1991 when the first cryptographically secured chain of blocks were described by Stuart Haber and W Scott Stornetta continued on its phase of development until 2009.
In 2009, a group of or anonymous programmer dubbed satoshi nakomoto was able to implement the blockchain as a means of public ledger for peer-to-peer transactions. The usage of cryptocurrencies has gradually grown and without proper guidance or knowledge, so many persons will continue to fall as prey into the hands of scammers due to its decentralized nature.
I actually came to the knowledge of cryptocurrencies during the covid-19 lockdown on my usual quest on the internet, I spent the rest of the year acquiring more knowledge on how it works until the last quarter of that year where I made my first cryptocurrency investment. Those things I learnt actually helped me going down the process in which I'll be sharing with you as you read down.
Roadmap
If you are new to this then, I'll have to define what a roadmap is. So, What is a Roadmap?
A Roadmap is simply an Pop of plans in a sequence. It can also be seen as a strategic plan that defines a goal and measures to fulfilling the set target. It has come to be that any successful company has a roadmap, this explains where they are headed and everyone stays on track.
How does this assist in spotting a scam project? Going through some crypto projects, I've noticed that the details of the roadmap is poor and some does not even have a roadmap. Such projects with no roadmap or poorly written roadmap tends to be risky for investments and a such should be observed carefully.
Developer Team
Another important thing to make research on or watch out for is the developer team. In most scam projects, they tend not to reveal details of the developers making it difficult to associate the project to a person. In other cases, some faces of supposed team are being shown on the website without a link to their profile.
Although, for the sake of anonymity some good projects abstain from this practice of the doxing their developers but, one needs to be very careful when it comes to such projects.
Use Case
Now, this is another major thing to watch out for while scouting for a good crypto project to invest in. The use case is one thing that could determine the future value of a project and drive in investors.
In today's world, cryptocurrencies have diversified from the old model of just an electronic money for peer-to-peer transactions into gaming, memes, metaverse, decentralized finance and a lot more. Depending on which category a crypto project falls in, the use case determines its future potential.
Community
How is the social community of the project you are about investing? Ensure to be a part of the social community, there you will be able to monitor the activities of the rest of the members, Check out those managing the community if it corresponds with those you found on the projects website.
Network
This last one needs to be treated as a very important measure before jumping in to any cryptocurrency project. Why?
The reason is some scammers are very tricky to the extent of recreating existing good projects with the aim of absorbing and misleading investors into investing in them. In order not to fall a victim of circumstance, ensure that you carefully observe which Network the project is built on and the contract governing the project.
Every crypto project is assigned to a contract address depending on the network. When I make mention of network, what I mean is the binance smartchain network, polygon network, solana network, smartbch network and so on.
For almost every crypto project (tokens) there is usually a clone project to mislead investors and in order not to fall as prey, you'll need to watch closely to the network's contract address assigned to the project.
Conclusion
Due to the decentralized nature of the blockchain, one is liable to the effect of every risk taken because in most cases transactions can not be reverted or traced to a person. From personal experiences, I have written this article, "How to identify scam crypto projects" to guide you so, if possible mistakes don't repeat and risk are being controlled..
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Thank you for providing this tips. There are a lot of scam crypto nowadays and sometimes they can be a little bit cheeky.