The world of cryptocurrencies is rapidly evolving, and dozens of new tokens appear every month. Some of them truly bring innovations and build real products, while others are created solely for speculation or, worse, are scams. How can you distinguish a promising project from a potential fraud?
What raises concerns about new tokens:
1. Anonymous team
If the project developers hide their identities or claim to be a 'team from Singapore' without verification, it is worth being cautious. Serious projects have public figures.
2. Lack of product
If a token is already trading but has no platform, no MVP, and no roadmap - this is a troubling sign. Such tokens are often created solely for pumping and subsequent dumping.
3. Excessive marketing
Too aggressive advertising, promises of '100x', referral schemes - signs of a potential 'sucker' for retail investors.
4. Dishonest tokenomics
If the majority of tokens are held by the team or 'investors', and there are only crumbs left for the community, there is a high chance that during growth they will just dump everything on the market.
Conclusion
Not all new projects are scams. But if you don't verify information and chase after hype, you can easily become a victim of a 'pump & dump' scheme. The best approach is to do your own research (DYOR) and not invest more than you're willing to lose.
Invest your money in verified projects such as: