๐จ How to Spot Ponzi Schemes & Rug Pulls in Crypto ๐จ
Not all projects are legit. Many are designed to steal your money. Hereโs how to recognize Ponzi schemes & rug pulls before it's too late. ๐งต๐
1/ Whatโs a Ponzi Scheme? ๐ญ
A scam where old investors are paid with new investorsโ moneyโnot real profits.
๐จ No real business model
๐จ High, guaranteed returns
๐จ Collapses when no new money enters
2/ Common Ponzi Red Flags ๐ฉ
โ "Risk-free" or guaranteed high returns (10%+ per month)
โ Referral-based earnings (you get paid for recruiting, not actual value)
โ No real product or revenue source
โ Fake testimonials, flashy marketing, & celebrity endorsements
3/ Famous Ponzi Scams in Crypto ๐
Bitconnect (BCC) โ Promised 1% daily returns, collapsed in 2018
OneCoin โ $4B scam with no real blockchain
Mirror Trading International โ Fake Bitcoin trading, collapsed in 2020
4/ Whatโs a Rug Pull? ๐๐จ
A scam where developers hype a token, then disappear with investors' money.
๐จ No real use case
๐จ Fake liquidity
๐จ Early investors dump, leaving others with worthless tokens
5/ Types of Rug Pulls ๐ฐ
๐ธ Liquidity Pull โ Devs remove liquidity from a DEX (Uniswap, PancakeSwap)
๐ธ Minting Exploit โ Devs print unlimited tokens & dump on holders
๐ธ Pump & Dump โ Insiders hype a project, then sell at the peak
6/ Rug Pull Red Flags ๐ฉ
โ Anonymous devs with no verifiable history
โ No locked liquidity or code audits
โ Fake partnerships & plagiarized whitepapers
โ Suspicious tokenomics (high dev allocation, crazy APY)
7/ How to Protect Yourself ๐ก๏ธ
โ
DYOR (Do Your Own Research)
โ
Check liquidity locks on DEXTools, Unicrypt, Team Finance
โ
Verify audits (not just logos)
โ
Avoid projects with cult-like communities (no criticism allowed)
8/ Final Rule: If it sounds too good to be true, it probably is. ๐จ
Stay safe & protect your crypto! ๐ก๏ธ๐
Share your experience! ๐