How to avoid crypto scam projects
In recent activity on smartBCH network, we experienced multiple scam projects already. This is not new to the world of crypto especially when most of the transactions are being done in a decentralized way. The thing is, we don't want to feel that we are being left behind and we don't want to miss the opportunity when we see the numbers being doubled instantly so without giving ample time for researching, we tend to jump quickly and join the hype immediately.
Some scam projects are easy to identify especially if they just keep on talking nonsense and keep on making promises without giving any progress. I will give you some ways to identify scam projects but I want to remind you not rely fully on my advices, always do your own research before investing.
Crypto scam projects are unique they even put some twists and creativity just to hide their final motive. While meme tokens can easily track if they don't have any use cases, just a token by season and after the hype, the firstcomer will surely dump and leave it. Mostly meme token investors are just buying for a short-term hold. Scam tokens can be identified as legit projects too.
Be careful on where you put your money, consider all the red flags and make sure to check the list below:
Website - Almost everything you have to know can be found on their website. Every crypto project usually releases Whitepaper - they put their ideas and explaining objective they are aiming. It is one the most trusted way to check the project if it is legitimate or not. Tokenomics - Token Economics. You will see here the plans about the distribution of the assets, where it is located and so on. For example: liquidity 30%, airdrop 10% development 30% marketing 20% burn 10%. They also include the usecase and the roadmap so if you are there for a long term hold, you have to be aware to all of that. As a crypto investor, always check the website and read the information they put on their website, run the context on plagiarism checker and if the result is 50-100% plagiarized, count is as a red flag.
People behind the project- Verifying a project can be tricky and they might be telling lies just to convince you. The perks of being known in a crypto space is they will trust the project easily because the people behind the project such as developer and the team doxxed themselves. But if you don't have any idea where they came from, their previous projects and knowledge about blockchain and technologies, address it as a red flag.
Fake endorsements- fake endorsements usually sees on blogs, twitter and even on youtubes trying to use big names of influencers. Beware of fake news!
Smart contract - It's hard to check it if you don't have any basic knowledge about technicals so you have to seek for professionals or read the developer's analyzations. sometimes they will send warnings on telegram or discord channel if they find any red flags.
There are types of scams you have to know such as phishing scams getting your personal information to hack your account and access the funds on your e-wallets they can be called as technical support scams too as if they are trying to help you but the motive is clear, they just want your money. Giveaway scams that mostly pyramiding schemes, Investmenst scams when they ask to invest in 'once in a lifetime' opportunity and will pay off hundredfolds
As with all of the scams mentioned above, It is very important to secure your privacy to keep your data secure and wide eyes open. Remember, no legitimate company will approach you asking for money, and you shouldn’t send currency to random strangers either.Â
If an investment opportunity seems too good to be true, promise unrealistic returns, it’s a scam. Report them, and ignore any further messages.
Always remember that there are risks on investing, Invest what you can afford to lose and do your own research, do not trust anyone so easily.
Disclaimer:
Author's Note:
Article #130 (April 12, 2022)
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Hello, my friend
Scams are permanently in fashion in the crypto world.
I wonder, why is this harmful fashion thriving?
Greed!
I appreciate very much all your recommendations to avoid scammers, and I will take them very much into account. But, first of all, one must overcome your own level of greed.
Greetings.