Projects to beware of: Signs of scams in cryptocurrencies
In the world of cryptocurrencies, not everything that glitters is gold. There are many projects created with the sole purpose of scamming, known as “Scam Coins.” Here are the main signs that may indicate a fraudulent project:
1. Promises of unrealistic profits
If the project promises you a guaranteed return like:
“Invest $100 and get $1000 in a week!”
It is largely a scam. Cryptocurrencies are volatile, and no one can guarantee profits.
2. Mystery surrounding the team’s identity
When you can’t find real names or LinkedIn profiles for the team, or they use pictures from the internet – that is a warning sign. Transparency is very important.
3. A project without a real product
Projects that offer no application, platform, or actual use, just “pretty talk” and marketing on social media – are often scams.
4. Pressure for quick entry
Like: “Limited offer!” or “If you don’t invest today, you’ll regret it!”
These are psychological tricks to force you to make a quick decision without studying.
5. Unfair distribution of tokens
If most of the tokens (e.g., 80% or more) are owned by the founders or are of unknown origin, there is a risk of market manipulation or what is known as “Pump and Dump.”
6. A suspicious community
If channels like Telegram or Discord prevent criticism and questions, and expel anyone who asks – that is suspicious.
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Famous examples of fraudulent projects (in the past):
• BitConnect: Promised very high daily returns… ended with a major collapse and the theft of millions of dollars.
• OneCoin: Claimed to be an alternative to Bitcoin… but was actually a massive scam.
• SaveTheKids Token: Used by influencers on YouTube to raise money, then withdrew liquidity and disappeared.
