1. Lack of a Clear Purpose or Utility

Legitimate cryptocurrencies like $BTC $ETH and $SOL usually have a clear purpose, such as solving a specific problem or enhancing an existing blockchain.

Projects without a clear roadmap or purpose are often just looking to capitalize on hype.

2. Anonymous or Unverifiable Team

Look for a team with experience and transparency. Anonymous teams, or those with unverifiable members, could indicate a scam, as it’s harder to hold them accountable.

3. Promises of Guaranteed Returns

No legitimate investment can guarantee returns, especially in the volatile crypto market.

If a cryptocurrency promises guaranteed returns or “risk-free” investments, it’s likely a scam.

4. Excessive Marketing and Hype without Substance

Overly hyped projects that focus more on marketing than on their technology or product development may be looking to lure in quick investors and disappear.

5. Unusual Token Distribution

Watch out for projects where a significant percentage of the tokens are owned by the development team or a few investors.

This could lead to price manipulation and potential "pump and dump" schemes.

6. Lack of a Whitepaper or Vague Technical Details

A whitepaper is a key document explaining the technology, goals, and roadmap.

If a cryptocurrency has no whitepaper, or it’s vague and poorly written, that’s a major red flag.

7. Unrealistic Goals or Timelines

Promising revolutionary breakthroughs without realistic timelines or achievable milestones is often a sign of a scam or inexperienced team.

8. Pressure to Buy Quickly

If there’s pressure to buy quickly (like "limited time only" deals or early-bird discounts), that’s a sign of manipulation.

It’s designed to create FOMO (fear of missing out).

9. Poor Security Practices

Projects without a focus on security, frequent code audits, or open-source code are riskier.

Quality projects make security a priority to protect investors' funds.

10. No Real Partnerships or False Claims

Verify the partnerships and affiliations a project claims.

Scam projects often list fake partnerships with well-known companies to create legitimacy.

11. Extreme Volatility or Sudden Price Spikes

Extreme price fluctuations, especially if they lack a rational basis, can suggest price manipulation, often seen in "pump and dump" schemes.