In an industry full of get-rich-quick promises, it’s crucial to tell the authenticity of a project from a fake one. Here are a few tips to help avoid scams:
1⃣️Basic research:
- Use Google searches and Twitter to research tokens and teams.
- Check if social media accounts are verified and participate in discussions to understand community perspectives.
- Watch out for low engagement and fake comments on social media.
2⃣️ Search for token information:
- Search the token address on Google and you should find the official website and whitepaper.
- Avoid clicking on suspicious ads and make sure you’re visiting the official website.
3⃣️Code verification:
- Check if the code is verified on a block explorer like Etherscan.
- Unverified code may be a sign of a scam.
4⃣️ Check comments: Check the comments section of a block explorer for complaints or warnings.
5⃣️ Blacklist check: Check DappRadar’s blacklist to see if the token is on it.
6⃣️ Token index information: Find token information on token index sites like Coingecko or DappRadar.
7⃣️Exchange listing: Check how many exchanges the token is listed on. Tokens that are only listed on DEX are at higher risk.
8⃣️Liquidity check: Check the liquidity of the token on the DEX platform. Low liquidity may be a scam.
9⃣️Use analysis tools: Use tools such as Smell Test, Honeypot, DEXtools, etc. to analyze tokens.
Scammers always exist, both on the blockchain and in the real world. Following these suggestions should help you avoid fake tokens designed to defraud funds.
