Every day in the crypto world, there are scams, but isn’t it different? Newcomers to the crypto world should take a look.

I believe that veterans in the crypto space have their own set of screening experiences regarding which projects are reliable, which to be cautious of, and which to observe. However, for newcomers, it can be overwhelming. In fact, these veterans are not necessarily more skilled; they just have more experience being scammed. Why do they keep getting scammed? Here are a few summarized points:

1. Complex technology, lack of transparency: Web3 utilizes complex technologies like blockchain and smart contracts that ordinary users cannot understand. Scammers use jargon to deceive, such as fabricating fake blockchain projects to scam money. Although blockchain networks are public, it’s challenging for users to verify the real background and team strength of projects. Scammers exploit this by concealing the truth and spreading false information to mislead investors.

2. Difficult regulation, inadequate laws: Web3 is decentralized, anonymous, and can operate across borders with 24/7 trading. Transactions and activities are hard to regulate from a single location, which allows scammers to exploit this loophole by operating in different regions to evade legal consequences. Furthermore, the laws regarding Web3 are still being improved, and some new scams are hard to define legally, leading scammers to believe that even if they are discovered, they won’t face harsh penalties.

3. Market speculation, user mentality: The Web3 market is relatively new, and many people want to make quick profits. This speculative mindset makes investors easily attracted by promises of high returns, ignoring risks, while scammers use exorbitant returns as bait. Additionally, with many new opportunities in Web3, users are afraid of missing out and often participate without fully understanding, giving scammers an opening.

4. Early industry stage, project evaluation is difficult: Web3 is still in its early development stage, and many projects lack mature business models and stable technology. Some projects are just empty shells for scammers to raise funds with no real value or prospects. At the same time, Web3 projects are innovative and unique, making it difficult for investors to assess their worth or feasibility using traditional methods, allowing scammers to package inferior projects as scams.

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