The recent squid game fraud has brought the issue of cryptocurrency scams to the forefront again. Many hopeful investors have been left in tears with their investments stolen because they invested in a scam project.
A lot has already been said about how to avoid scams but I still want to add my two cents. Based on personal observations, the following are red flags that could indicate that a particular new crypto project is a potential scam.
The project is named as a version of popular or trending items/events/projects
The idea is to make you think that they affiliated to the popular project.The project claims that they will be listing on all the big exchanges such as Binance and Coinbase on launch.
Getting your new project listed on big exchanges like Binance is not as easy as many may believe. They are usually high standards to be met before you can qualify. Most new projects can barely meet these criteria so any project loosely claiming big listings is likely a scamThe project claims outrageous listing prices
Another big sign. The project claims they will be listing at huge prices that most times seems unrealistic. The idea is to entice you with promises of big profits.The project has no clear whitepaper/roadmap
If a project can't define the purpose of its existence and how it intends to achieve that purpose then it is likely a scam.Non-engaging devs/admins
The devs behind a scam project typically shy away from engaging the public via social media or other means. If you can't reach out to the project team and get adequate responses then it is not wise to invest in such a project. Even when they have social media, they turn off commenting and user messages. This is usually done to stop discerning persons from raising alarms and warning unsuspecting members.Low quality or copycat websites with little or no information
A scam project will typically have sparse information available about their project. In a lot of cases, they simply copy a popular website and populate it with pre-sale information and nothing else.Repeated postponement of pre-sale and airdrop end dates
These postponements are typically done to rope in more victims.
These are the typical warning signs that may indicate a potential scam. Sometimes the signs are clear but we let the fear of missing out (FOMO) to cloud our judgments.
For any project that catches your fancy, before investing, calm down, do your research and don't invest more than you can afford to lose.
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