Word of the day, the "Scheme" in Crypto: Stay Alert!
In the dynamic world of cryptocurrencies, it is essential that we develop a critical ability to identify what is popularly known as a "scheme". A "scheme" in crypto refers to any project or investment that, despite promises of high returns or being the "next big thing", lacks a solid technological foundation, a viable business model, or real transparency. Often, these schemes rely on attracting new investors to pay previous ones, which is the main characteristic of a Ponzi scheme.
Warning signs include promises of guaranteed profits, aggressive referral structures, lack of a tangible product or service, and pressures to invest quickly. As investors, our main defense is thorough research: review the whitepaper, the team, the community, and the real utility of the token.
Your due diligence is your best protection against falling into a "scheme"!