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