In the fast-growing world of cryptocurrencies, Binance CEO Changpeng Zhao (CZ) always advises caution when investing. Here’s a simple guide inspired by his advice to avoid falling into the scam trap:
Unreliable team 🕵️
If the project team is anonymous or lacks transparency, this is a red flag. CZ always stresses the importance of choosing projects that are managed by a reputable and experienced team.
Check out the white paper 📄
Real projects clearly state their plans in the white paper. If it is vague or lacks details, don't risk it. CZ emphasizes that transparency is the foundation of any successful project.
Overpriced offers 💰
Returns that seem “too good to be true” often are not. As CZ says: “If it looks fishy, it probably is.”
Excessive marketing campaigns 🎯
Excessive marketing without a real product is a sign of a scam. Look for projects that focus on developing technology rather than exaggerated advertising campaigns.
Unpublished code 💻
Any serious project depends on transparency in sharing its code and technologies. CZ always advocates for supporting verifiable open source projects.
Golden advice from CZ 🛡
Always research the project and the team.
Don't invest based on emotion alone.
Only invest what you can afford to lose.
Caution in the world of cryptocurrencies is your first line of defense, and remember that achieving success requires awareness and careful analysis.