PART 1
This will be the first of four lessons where I will be talking about how to spot a scam project. With the craziness in the Crypto market right now, I think every noob needs this lesson. In the past couple of months we saw prices skyrocket to new highs and we saw an influx of noobs and those hoping to make a quick buck from crypto. Right now the euphoria has eased and a lot of scams and meme coins have folded up and rugged on their community. That could have been so easily curtailed if a lot of those scammed managed their greed and knew about what we will be talking about here.
I will discuss four tips that have helped me over the years in Crypto spot scams and stay away from them. This lesson will come in installations and this will be the first of four lessons on the subject.
The first thing to always look out for in a project is the Technology. Every Crypto project should have a technology which it hopes will solve a real world problem. The most basic aim of Crypto and Blockchain is to provide an alternative to the real world technology, albeit a better alternative. Any project without a technology is one you should steer clear away from. They are basically just a Ponzi or pyramid scheme and very far from a Blockchain project.
I think it is worthy of mention here that this technology is not always new or a novel one. It might be an old one, but there should be something new the project adds to it to make it unique. An example of a project with a technology I love is Status private Messaging. Status like the name says is a private Messaging App that carries the true meaning of privacy. Chats and messages are encrypted with state-of-the-art Web3 technology and there is no room for selling data or data leaks like we have seen over the years from various social media giants. But more than that, Status looks to better other established messaging platforms by tripling as a wallet and a Web3 browser. You can store all your ERC-20 and ERC-71 tokens in the Status wallet from the app. Users can also access all their favorite DApps and Web3 sites directly from the Status App by going to the browser. This in my opinion sets Status way ahead of the rest.
Projects like these are what you should be investing, because they fulfill the most basic vision of Cryptocurrency and Blockchain which is to better the already existing ways of doing things. I truly believe Status is going to do big things, with a technology like that; there is no telling how big it can grow into. That's basically how to research into the technology of a Blockchain project, you have to find out what problem the project seeks to solve and you will then know whether it is a worthy one or not. Watch out for Part 2 soon my friends as we take a deeper delve into uncovering scams.
