Beware of Fake Contracts! It's Best to Keep Your Distance from Such New Projects

The cryptocurrency world is too deep, with new projects emerging endlessly, but hidden within are countless 'fake contract scams'! Listen to me, when faced with such tricks, either ignore them or run faster than a rabbit, otherwise the outcome is only one - your wallet will be emptied, and your investment will turn to ashes.

How terrifying is the trick of fake contracts?

A friend of mine was just scammed. The project party, under the banner of 'new technology innovation', conducted a private pre-sale, with contracts written in an obscure manner. It seemed high-end and sophisticated, but in reality, it was riddled with loopholes, or even entirely a piece of fake code. He invested a five-figure sum, but before he even received the coins, the contract just pulled the plug and ran away. In one night, his wallet was empty, and he was laughed at as 'chives'.

What characteristics do these new projects usually have?

Unclear origin, vague technology

The project team often fabricates backgrounds, even claiming to cooperate with well-known institutions, but upon closer inspection, there is not a shred of actual proof. The entire white paper reads like nonsense, with 'technological innovation' described in grandiose terms, yet no one can clearly explain where the innovation lies.

High yield temptations, time pressure

They will tell you, 'The early bird gets the worm', 'If you don't grab it, you'll lose out', all while promoting extremely high annual returns or enticing offers of multiplying your investment several times in the early stages, making you excited. But think calmly, does luck really drop pies from the sky for you?

Lock-up and restriction rules in various forms

The classic trick in fake contracts is the lock-up. Once you finish depositing, withdrawing or trading becomes a pipe dream, either they find all sorts of reasons to delay, or they simply freeze your account.

How to identify fake contract scams?

Check the contract address and code: Real projects will publicly share their contracts for easy review. Fake contracts, on the other hand, are clueless when questioned, and sometimes the code only supports deposits but not withdrawals; such absurd designs can be spotted with a little attention. Look at the whitelist wallets: If the project party privately controls multiple wallet addresses, and the fund flows only show large deposits, this is definitely a precursor to running away. Seek third-party audits: Some platforms like Etherscan or CertiK can provide code auditing services, which can greatly improve the accuracy of your judgment.

My advice: Don't gamble on new projects, and don't be a bag holder!