Scammers are everywhere and they are getting smarter
Our job is to protect ourselves from them
My guide on how to avoid investing in scam projects
90% of newbies don't do this ⬇️
It is very important to be careful not to lose your money
Cryptocurrency losses due to hacks and scams increased by 113% in Q2 2024 and reached $$ 572 million
Checklist for identifying scam projects⬇️
1 ➔ | Do thorough research |
Does the project actually create a worthwhile product or not?
The project must have real evidence
Working product Need: alpha version, beta version, test version - anything that confirms the reality of your work
As an example, let's take the acclaimed Grass
A blockchain-based protocol for decentralized web page analysis that provides data collection
We saw an early working system that anyone could test and then get rewarded
2 ➔ | Who is behind the project |
Undoxxed teams can be successful, but they are the exception, not the rule
The most successful projects have doxxed teams, where identities are public, allowing you to verify their experiences
While undoxxed projects are not automatically bad, it does raise questions about whether other red flags are present
In turn, it is important for us to know who is behind the project and whether they are trustworthy
3 ➔ | Promises too good to be true |
Scammers often reveal themselves with unrealistic promises and constant misleading advertising, claiming huge profits in the future
Red flags are phrases like “The next 100x gem” or “It will never be this cheap again”
4 ➔ | Contributions |
Projects control who invests and how much, aiming for an equitable distribution of funds
Scammers don't care about this, their goal is just to raise money
If you see unlimited contribution amounts or very high limits per person, it's a reason to think twice