The crypto market is a place where new projects with the ambition to "turn the world upside down" appear every day. They promise passive income, a revolution in DeFi or NFT, or just a beautiful site with zero code. But where does innovation end and the banal pyramid begin?

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Red flags: how to spot a fake startup

1. Promises of extraterrestrial profits. If you are told that for $100 you will become a millionaire in a year - this is already a reason to think. For example, many "successful" pyramid schemes, such as BitConnect, attracted investors in this way.

2. The ghost team. Serious projects always have real developers, not "beautiful people" from stock photos. If the team is not on LinkedIn or GitHub - keep your money away.

3. Doubtful token mix. A great example is the Squid Game Token, which grew by thousands of percent, and then its developers simply disappeared with the investors' money. If the token has no clear value or its owners control 90% of the supply, it's time to run.

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Why do people still believe in myths?

Crypto often appeals to our base instincts: fear of missing out and greed. People want to believe they have found the next Bitcoin that will make them rich. However, as practice shows, 95% of new tokens lose most of their value after a few months.

Another factor is FOMO (fear of missing out). Who wants to be left without winnings when everyone else "already bought"?

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How to protect yourself?

1. Research. Read the project, check the team, analyze the white paper. If the text consists of good words, but without technical details, this is a bad sign.

2. Look at partners. A real project always has the support of serious investors or corporations.

3. Don't invest more than you can afford to lose. This is the basic rule of the crypto investor.

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What about the positive?

Of course, there are projects that really change the industry. For example, Ethereum$ETH has proven its worth as a foundation for DeFi and NFT, and Cardano$ADA is constantly pushing its technological boundaries. Also, tokens like Chainlink$LINK have brought investors significant profits because they solve real problems.

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Visnovok

The crypto market is a great opportunity for investors, but also a field for scammers. Remember, if something seems too good to be true, it probably is. Do your homework, check the facts, and most importantly, don't get emotional.

Because instead of a Lamborghini, you can stay with a souvenir coin and an experience that is painful to remember.