Our job is to protect ourselves from them
My guide on how to avoid investing in scam projects
90% of newbies don't do it ⬇️
It is very Important to be careful not to lose your money
Crypto losses from hacks and scams soared by 113% in Q2 2024 to reach $572M
Checklist for identifying scam projects⬇️
1 ➔ | Do a 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 their work
For an example, let's take the acclaimed Grass
A blockchain-based protocol for decentralized web page analysis that provides data collection
We saw an initial working system that anyone could test and then be rewarded
2 ➔ | Who's behind the project |
Undoxxed teams can succeed, but they’re the exception, not the rule
Most successful projects have doxxed teams, where identities are public, allowing you to verify their experience
While undoxxed projects aren't automatically bad, it raises doubts if other red flags are present
In turn, it is important for us to know who is behind the project and whether they can be trusted
3 ➔ | Too-Good-to-Be-True Promises |
Scammers often reveal themselves away with unrealistic promises and constant hype, claiming huge profits in the future
Red flags are phrases like “The next 100x gem” or “It'll never be this cheap again”
4 ➔ | Сontributions |
Projects control who invests and how much they invest, aiming for an even distribution of funds
Scammers don't care about this, their goal is only to collect money
If you see unlimited contribution amounts or limits per person that are too high, this is a reason to think twice
This may indicate an attempt to raise money quickly rather than build something sustainable
Scammers are getting craftier, but if you are careful and do these 4 checks, they can be bypassed
Always research the project and take your time
Protecting your investment is a top priority
