In the world of decentralized finance (DeFi), new tokens and investment opportunities are created every day.
However, not all of these opportunities are legitimate. Scam tokens are a common problem in the DeFi landscape, and it is essential for users to be aware of the various tactics scammers use.
This article will discuss three different scam token variations that you should watch out for when participating in the DeFi market.
1. The Simple Scam Token:
The first variation is the most straightforward scam and targets inexperienced DeFi users. Scammers create a group, fill it with content, and disable the ability to ask questions through comments. They then start shilling the token, enticing users to buy it.
Unfortunately, once the user purchases the token, they lose the ability to sell it, and the scammer can take all the liquidity (money) used to buy the token.
2. The Sophisticated Scam Token:
The second variation is more elaborate. The scammer, acting as the group creator, communicates with readers in a condescending manner, posing as a superior being.
They then start enticing users to buy an unknown coin.
The catch is that the group creator buys a contract from developers and creates their token with infinite supply. With this infinite supply, the scammer begins converting the subscribers' real money, effectively robbing them while making false promises that the token value will soon bounce back.
Additionally, the scammer may use psychological tactics, reminding users that they knew the risks involved in trading and that everyone is responsible for their decisions.
3. The Most Devious Scam Token:
The third variation is the most cunning. The group is steadily built up, and posts are made occasionally. These posts focus on earning opportunities through various "grinds," such as abusing a website to earn $20.
The scammer then directs users to different services for an initial purchase, either partnering with these services or creating them. In the end, users receive less than what they spent, learn nothing, and ultimately enrich the group creator. The next step for the scammer is to move on to another scam, such as promoting fraudulent software.
Conclusion: The DeFi market offers many legitimate opportunities for investors, but it is crucial to stay vigilant and aware of potential scams. Understanding the tactics used by scammers can help you avoid falling victim to these malicious schemes.
Always do your research, ask questions, and consult with trusted sources before making any investments in the world of DeFi.
