Bitcoin Forum

These days, the number of scam projects in the cryptocurrency space is really getting alarming.
It seems as if creating a cryptocurrency or token is as easy as opening a facebook account, and that's why rug pulls and other forms of crypto scams is rampant now.
Shouldn't the blockchain technology restructure their requirements and tighten their audit methods to prevent or to an extent, reduce this menace?
I think some progressive actions should be made, like more strict supervising and audits and as well, due consequences should be attached to defaulters.
Cause it's really disheartening the loss being recorded everyday due to elaborate cryptocurrency scam schemes.

I know where you are coming from, this is the nature of crypto when I first get in back in 2017. But the question is, who are going to supervise the development of projects?

I mean this market is open, everyone can development anything promote it through social media, create a hype and make money. Unfortunately this is the nature of the crypto world we lived it. So the best weapon, or at least what we can do on our part is to really investigate the projects that we are going to invest our hard earn money.

Welcome to crypto.

You should know, "Crypto & Blockchain" cannot be moderated because everyone can created their own project, coin or token that's part of "OpenSource". If there has some company or person can control the blockchain or crypto space then is not decentralized.

To avoid this, you just need to educate your self how to prevent getting a scam! search on youtube, forum or internet, I believe already a lot people sharing how to prevent this but off course is not guaranteed 100%.

At least you can research and make your own due diligence, the only problem on crypto-space to many stupid people who believe can get rich faster by investing on shit meme token just because the hype. That's the reason why most people getting loss/scamm.

Not all crypto tokens or projects are same. There are a several types which are minted with different purpose and serve different userbase. There surely are some projects and tokens that works with authorities or supervising agencies, some goes for self sponsored audits while several others have completely different stance towards regulations or supervisions. There are coins that just mean to be meme, some are proudly elaborate ponzi while some wants to be as anonymous as possible. So, users have options to choose from. And where there is low risk, there ought to be low profit.

It started more than four years ago.

But it is that easy if you have knowledge in coding. That's what smart contracts are for.

If you're suggesting that developers should switch from open source codes to closed source then that's a no. Some popular blockchains today are centralized and not completely open source but there's still a level of freedom for these devs to create a token.

Audit of source codes is pretty normal today but you still see some scams pulled by these devs. One reason why that's the case is because these "investors" do not read the warnings placed on the report. It's their fault for not practicing due diligence befor buying.

That's one of the pitfalls of a decentralized market where we don't have a governing body or a regulatory framework. There are tens of thousands of crypto projects available in the market and scammer are making full use of the crypto market to become rich.

Also it seems that most of these scam coins are listed on a single platform - pancakeswap! I am not sure who runs this exchange but he/she must take some measures to minimize listing of new coins which has really opened up the can of worms!

It's definitely true that there are like 100 of new tokens that are appearing each and everyday and it's almost impossible to keep track of all of that and from those 100 projects i would guess that at least 95% are just another meme-coin (or sh*t-coin). For meme-coins it is definitely true that the creation is just as simple as opening a facebook acount. You just create another BSC or ETH or whatever token name it after Elon, Shibu or whatever. Then you only need to use a generic website template and that is pretty much it. I don't think you can really do much against that. The only thing you can do is to not buy such sh*t-coins.

I see that and there are bunch of scam tokens in the market. that's why so many complaints appear about that coz they have become victim from the scam projects.


I can say yes and it's pretty easy to issue new token and there are so many freelancer was also offering this kind of service as well to create new token for the scam purpose only. There was also another problem is so many shit coin gamblers in the market never gets bored even when they have got scammed so many times.


It will be eliminating the main purpose of blockchain but that's also good to prevent the scammers to spamming network with scma token.


This time so many projects are also doing regular audit and it can be seen from the site like certik. That's why smart people will never the shit coin believers to buy scam token.

I think you should stop reading Twitter Elon Musk and Paris Hilton :)
In a decentralized world, it is impossible to control the launch of new projects and force them to audit. An audit is generally not a guarantee of security.
This was shown by the practice of hacking defi projects, and many hacked projects had audits of well-known companies.
https://bitcointalk.org/index.php?topic=5267124

The word supervised will erase crypto Decentralisation mate that's why I don't think it will work, we want freedom from centralised power thats what makes BTC a good asset and many other crypto projects followed such idea as well, there are too many new projects but we people are the ones to try and always avoid scam projects

Its impossible friend, many crypto survived the touch of the government because they are decentralized but if supervising projects become a reality this will erase the decentralized part of every crypto projects and turn them into full centralised projects

Serious cryptocurrency projects have long been centralized and operate in accordance with the laws of the countries in which they are registered.
I'm talking about projects like OpenSea, which has changed rapidly.
If we talk about small projects that will not work according to the laws of the states, then they will not attract investment and will not be able to develop.

Not surprised that people are now looking for regulation in crypto though it won't work as obviously this is a decentralized space anyway. I can still recall back then that ICOs were still like booming and slowly dying back in 2017 and people were looking for regulations due to scams popping up.
It is just not going to happen.

The only way a project can stay fully decentralized this days is if the team remain unknown just like BTC, government wants to be everywhere including the decentralized world too so many projects calming to be decentralized aren't really decentralized for they have made themselves known to the world.

It is literally 10 minute job to create a copy of pancake/uniswap. I can do it in an hour and I am not even a developer. Obviously you need a new logo and a new design for the website which would be the bigger challenge, but if you can take what they have, put it on a new website, then slowly change the design then you are going to have your own "project". It will not be good and it will probably not get you rich but at the very least you could spend like a few thousand dollars and make it back.

Of course, if you end up actually believing the project then you will actually get it audited by CertiK and in that situation if you are not a serious project you will get screwed and nobody will invest into you when they find out how you did it. Long story short starting a new project to make a few thousand dollars is easy, starting a real project is not that easy at all.

As far as i know that DOT is the only platform that is aware about this problem and that's why DOT was implementing verification for anyone who wanna issue their assets in the DOT blockchain. This may become a very strict restriction but it can also make another problem just like the platforms will have less demand on it. People should have done their own research but again when it comes to the shit token and there will always be shitcoin speculators that are making the scammers wanna try to make more and more shit tokens. These speculators are the main problem.
Should KYC for tokenization became the new standard in asset creation?

The question is then, who will do this?
We know that everyone can create their project in blockchain system, none control blockchain, and we don't even know who use  the blockchain technology to create legit or scam projects.
Scam projects will never end, like this. That is why we cannot lay on that kind of power to stop scam projects. What we can do is by making ourselves aware of the new projects that are probably scams, hype projects only, shit projects, and also legit  projects. We should be smarter everyday because there will be always new projects upcoming every day and we cannot stop them.

Not just these days but even before. It's alarming not because they are growing in numbers but still, new people are getting scammed. It's not a reason that they are newbies but they are just not taking seriously their investment and will just invest anywhere no matter what as long as there's a speculation that those projects will have their moon price someday.

You may be able to create a DAO of sorts that could try to maybe govern it, but I mean really due to the nature of blockchain anyone can deploy a smart contract and create a liquidity pool to give it a value on the DEXs.

Having some sort of governance is for the best, but it should be the community as a whole that can do it.

What you are asking for is centralization. And with centralization we could just use databases, and whole point of crypto is being permissionless. With freedom comes scams, and criminals obviously will use this space, for many reasons. Mainly to exploit greed of people.

Everyone is free to use blockchain as there's no requirement really needed for its deployment but, as long as you've got the budget on who's going to do it, everyone can do it.

Before it wasn't like this that we're looking for regulation and we've all liked decentralization which starts from bitcoin. It's all behind the blockchain technology that's being adopted by the newer projects. Just like in the proliferation of scams worldwide, we just have to be careful and vigilant so that we won't be a victim.

I don't know what to believe any more, if we allow crypto projects to be supervised by the law or government scammers will reduce and investors will know exactly where to put their money but the government are humans too and they can break the law easily, we will be under their power which to me isn't good, I think we should just leave things the way they are right now

anyone can create a product, good, service, token.. nothing should stop that and hard to manage/moderate..
however when that product/token is then advertised for sell to the general public. then that should be moderated/supervised whereby law enforcement should get involved in stopping it, should users/customers get scammed by it

but with that, if you are producing something for personal use and doing it in private where the general public are not harmed.. then aswell as not being easy to moderate/enforce. it should be upto those in private to sort each other out

but the general rule is. if cant slap someone with a wet fish if they wrong you. if you cant file a lawsuit against them. dont just hand value over to strangers, even if said strangers tell you a good story

Decentralization let the people to create whatever app they want and there is no such thing called auditing or monitoring in cryptocurrency blockchain, you should take the responsibility of analysing before investing your money and I will say the chances of even a legitimate project to be successful in 2022 is rare so I will go for the existing coins not the new coins because its available for cheaper and someone claims it as next Bitcoin.

I think what you meant to say is "regulated" instead of supervised.
It0s an oximoron in crypto space, as this space seeks to be detached from standard regulation, yet the same detachment is a breeding grounds for scams and moneygrabs

The short answer to your question is no, the market of cryptocurrencies is for the most part open source and decentralized, how exactly are you going to supervise that? You will need a centralized authority telling you which project is good and which is not, but it is not that something we were trying to get away from on the first place?

In my opinion you are making a huge mistake, it is true the number of scams is huge in the market but instead of accepting the fact you are your own bank now you want to delegate that power away, and if that is what you want then stick to fiat and leave this market alone since this market is not going to change just to accommodate people with those kind of views about it.

Impossible.

You are suggesting to confiscate the decentralised operations and still use it as decentralised asset.
You can’t control anything that is being made on the blockchain or crypto environment more precisely. These projects and involved teams might control the process, structure and flow of the project as whole but unfortunately we can’t control them on how it should be done.

That’s the whole point of crypto projects. They are free, publicly accessible to develop and manage.

That's not easy to restrict the blockchain like that, so many people can't even accept it. this has even been implemented by some blockchain in the past but this restriction gives limitations for people to use it for the private reason like issuing a token for their store and many more. The development can be more transparent when you're aware of it through knowing the result from the audit and many more. These days people know that if they can keep their eyes into the project through various things. Audit has become a new standard when you are issuing a new token to make sure that there will be no a critical code in your smartcontract.
Being transparent was so good but about the restriction and yes so many people didn't even like this and this is also decreasing the demand from the crypto project itself.

It's been alarming ever since the start and hype of ICO, the losses are amounting to billions of dollars, creating a coin and getting it hype and scamming investors is a lucrative venture for scammers, the rule is if you don't want to get scammed don't get involved or learn how to trace a good project it's impossible to monitor and regulate these new projects, like in this forum scam is not moderated, it's always investing at your own risk, the key here is helping one another to warn people if you have pieces of evidence that a project is a scam.

at the end of the day, it is you as a user have the final say on where to invest your funds. as it is not possible for an entity to look over the alt market, it is your job to look over your investments. this is the type of market where everyone can create their own project and leave whenever they want to. as most are anonymous projects it would be your prerogative whether to invest or not on a specific project and you can't blame anyone also whatever the results here

You can't have both accessibility and zero regulation.

If you want the masses and the unbanked to access crypto and DeFi, then you just have to forego a lot of the protection that the regulators offer.

Otherwise, you'd be taking a step backwards in terms of the ease of people getting into the space without KYC/AML tying them up unnecessarily.

If you do your due diligence, none of this should even be an issue. Scams are so easy to spot.

speaking of supervised, nothing seems better than the government. Unfortunately, crypto and government are quite different which makes that very difficult to do. Well, I agree that at the moment it looks like the development of new projects should be more closely watched and monitored, but the question is that no one is currently officially overseeing the development of new cryptos.
however, personally, I tend to have more personal standards in choosing new projects than dealing with oversight, such as team clarity and so on. however, when the identity of the team is known, their location, etc., it will increase investor confidence rather than having no team information at all. well, so far, things like this have been asked and wanted a lot, however, it seems that there is still no guaranteed solution to the problem of this new project.

If crypto gets supervised one way or the other then it's over, we won't be ever free from the power of centralisation, every thing will be controlled by the government is that what you want? We adopters of this technology are the ones to try as much as possible to always avoid scam projects, this is the least we can do

There are too many projects on the market, even now more than 16k are available, it is impossible for anyone to supervise all these projects and this is what makes us have to make strict regulations including money guarantees so that they are not used for scams.

It really seems that people come to this market without understanding the differences of traditional markets and a market like this one, bitcoin is not only another form of money, bitcoin is a completely different way to understand the economy.

This means that we cannot hope that the same principles that operate in the traditional markets like an authority which supervises investments all over the world is going to work here, and even if at some point the governments try to impose those same limitations in this market then they will fail, and if in the worst-case scenario they succeed then one of the main reasons to be part of this market will be gone and some of us will leave the market.

Specifically in regard to the quoted above, cryptocurrencies characteristic does not imply it causes more innovative scamming techniques that happening in our real-life world, many are based or already happened before even cryptocurrencies have its existence. I rather think it got amplified by how cryptocurrency works, especially the pseudo-anonymity parts whereas those ignorant people are getting deceived day by day.

Losses by a scam is indeed a tragedy, but to sacrifice by having strict regulation or forcing people to be monitored in regard to what cryptocurrencies they should invest in or how the cryptocurrencies project require strict guidelines wouldn't solve the problem either. The problem some people should really take into consideration of "being your own bank". With that, an extra step to learn how to protect themselves is essentials.

What progressive action you are talking about, supervision by the government. I am not sure that would be a great idea but with the insane number of scam projects we might see the government intervention in the future but the problem is that it will halt the development of genuine projects. There are private audits in the space and even then some of the projects vanishes without much trace.

I would correct the word "these days" to "everyday" :P It has been like that since the time money was first used by man. Scams exist since humans existed and avoiding them is the key.

It is easy to do that and hence there is a need for regulation of crypto projects by some government body, is what I feel.

If you do your research, you will be able to pick out the problems quickly too. However not everyone is an expert in this nor a novice in such.

What the forum members are currently doing is reporting scam projects in the "Scam Accusations" section of the forum and flagging the associated account(s). For now this self-policing of projects in this forum by its members is a reasonable alternative.

One's loss is another's gain. The point is that scams can be avoided and the first step in that is to be rigid about investing only in bitcoin and no altcoin. It will solve most of these scam token problems.

If you control the tokens. Then you partially centralize the whole procedure also it's not permissionless anymore. Basically, you get stocks:)

Just as bitcoin took the world by surprise as satoshi pretty much developed bitcoin in secret and did not release it to the public until it was ready, if we were to allow a centralized entity to supervise every single coin ever created then we will lose a great deal of what makes this market unique.

It is true there are a lot of scammers in the market, that is undeniable, but there are also developers trying their best to use the blockchain for many different purposes and they need free reign to experiment, if this is not the case then this market will eventually die for lack of innovation.

This would be used as an excuse for scam mongerers to run their scams, that would not be a good thing for the future of altcoins, would it?

This is also the reason why we need a regulatory system, to allow projects to develop but at the same time put in some legal restrictions in order to discourage someone abandoning their project entirely and leaving investors hanging. Moreover the pump and dump projects would also be kept under control if done properly.

However we have not seen regulation start in any country and it is a tough thing to start too. But we ca be hopeful that it will be for the good in future in order to protect both developers and investors.

It is true that it is so easy for fraudsters to enter this is something that is worrying. This is a real terror in the cryptocurrency world. There must be new innovations to at least reduce their discretion. Maybe those who have been here for a long time will be able to sort out which ones are frauds which are not? But what about the new ones? This in my opinion is what makes the good image of crypto tarnished.

The old members of the community are always warning new members about the danger of investing in new coins and many users also post scam accusations against projects that are using fake data on their website, so the community as a whole is doing what they can to minimize the number of scams taking place.

It is the newbies which are not taking advantage of this and invest in whatever they want and then they complain when they find out they invested in a scam.

It should not be a worry if you are not making the mistake of jumping into every bandwagon without doing your own research. Most mistake occur due to this and also due to a lack in financial mindset maturity, meaning that knowing whether a project's idea is really feasible in the real world or just in fantasies.

The real terror is keeping your own coins secure. Most people lost money due to lack of securing their wallets and posting their private keys on places that they should not.

This is a wrong statement. A crypto project is not a magic bullet to every problem in the society. Those problems will remain and they will be corrected only when governments work together to modify the system. However there will be innovations and not all of them will work. But roping in investors to fund your failed tech is something that investors should be careful of.

Research and experience can help. The "Scam accusations" section is very active in reporting possible scams. But it is community driven. To be safe, the only coin one should buy is bitcoin. As soon as you open yourself to altcoins, you keep increasing your risk.

The space for freedom is too big, which makes the potential for fraud bigger, there is no clear control over crypto, so it makes the threat of lies bigger that people cause, a lot of fraud that I hear is due to the lack of understanding of this space, let alone people go and get to know crypto on the basis of pressure or solicitation that does not involve knowledge, this is precisely what makes it even more difficult for people to avoid fraud, sad if we explore more about this issue.

You are so used up to centralization that you are not fully acquainted with how the Blockchain and Cryptocurrency works, blockchain was created for anonymity and decentralization, and now because there's a lot of scam and rug pull you want to change the structure and development, the best that you can do instead is to educate yourself first on how blockchain works and the full meaning of decentralization.
People are getting scammed because they are gullible did not take heed of warnings and did not moderate their greed.

Before you can make profit from Cryptocurrency you should first take your responsibility to yourself to study how to invest in Cryptocurrency, scammers are everywhere and the only way to fight them is through education.

Creating a facebook account is in fact more stricter than creating a new crypto because facebook will know if your going to create a fake account. They can ban you seconds later while in crypto anyone is free here to create their own coin, even if its a fake one although it will only be harder to attract investors if you make your project poorly like cheap looking website, lesser promotions or advertisement and if it has not undergo in audit.

There are basis that people look to identify a legit from scam so I do not think there is something that we must change. The original blockchain is unique and changing it to be more centralize can only destroy its real purpose and I do not think majority will like it.

The problem is blockchain was open source and anyone will able to do or create their own assets in the blockchain and there was no restriction on this thing. I should remind you that when you are seeing the market being flooded by the scam tokens and yeah, our brain must be a thing that can save use from the scam project. Audit can be done by anyone but the question is how much people that has ability to do audit to the code? If you are talking about newbies in here and you will be rarely seeing it. It can be said that if the newbies will become the main concern here. This has become the main concert but how transparent the development of project will be totally depend on the team itself.
You have no choice other than do your own research. this is the only thing that can save you in the free market.

I totally agree with you mate, but on the other hand, don't you think that introducing this kind of enforcement into cryptocurrency will undermine its core essence which is decentralization?
One thing you should know is that every new technology introduced into our system will all have a lot of pros and cons, it is up to us as individuals to try as much as possible to keep ourselves up to date to avoid being confused or cajoled into something fishy due to our lack of knowledge and understanding, scammers are still scamming because they find people to scam, and this is because alot of people today don't read, neither do they know how to do a proper research, most of us are carried away by extreme greed and desperation for quick wealth that we end up forgetting to read in between the lines or even take note of the warning signs, and this is why scammers have a lot of customers today, business booming for them and they keep increasing in their numbers.
If for instance, in all their strategies, they find nobody to scam or to fall for their lame tricks, they will have no choice but to pack up and go.

The crypto world that provides freedom and the absence of government regulation, make a lot of bad people take advantage of it by committing
fraud. Everything has a negative side, so from that back to ourselves how we respond to it. Since the beginning, crypto is indeed a high-risk asset,
so we have to be careful when investing in crypto, especially for newbies, don't be lazy to learn about the crypto world first before finally deciding
to invest in crypto. At least we must have the ability to do our own research and analysis, to be able to judge which projects are real or scams.
So if we ever fall victim to a scam when investing in crypto don't blame crypto, but blame ourselves for not being careful in making decisions.

I think now is even better than back few years ago I mean ICO back then where just cash grab man Is mostly about get that money and move on without any consciences I think now with launchpads and exchange KYC and IDOs this are much more easier Just stay away from 100X coins as buying after IDOs is a big mistake That can hurt like a sharp Knife man

The blockchain was open source and you can't force the developers to do audit if they don't have intention but it's good to see that if this time audit by trusted party has become a new standard when a project wanna try to be adopted by users. If the project wanna go public and audit has become a mandatory for the developers and remember that there are some platforms that were doing verification to the team behind the project as well. I have seen that so many projects are doing KYC verification to prove that if they have been running by the real team and that's not anonymous scam members who have been running it.
The majority of projects have been starting to be more transparent. this is good to decerease the chance for scammer to be able to create scam project.

It depends on how you look at things it is true that exchanges have taken a more active approach to try to supervise the coins they list on their website, but at the same time it is impossible to supervise every single coin out there.

After all even if the ico hype was huge the number of coins that we have now is many times higher than what we had back then, and when we add NFTs to the mix I would venture to say that things are even worse than what we saw in 2017 with icos.

Actually it is which is why we are getting lots of scams. 99% of the projects currently existing are a copy of each other with little or no difference. We have smart contract copying ethereum with just few improvement and we have memes coins all over the market adding no value but just surviving because people do not want to miss out.

We the investors also have to be blame, we give this scammers reason to create more worthless projects because we buy their coins. Assuming we did not buy all their worthless lies they will run out of business and go do some other things like doubler scams that would not be affecting the market directly.

Yes, indeed and we cannot avoid this growth of scam projects. Even about NFT, there are also some cam NFT that we can find out right now, just be careful, more and more, supported by analyzing and learning more to differentiate whether it may be a scam or not.

If this can be done, of course. But, who will do this? We know that there are some project reviews but they cannot work very well, some of the reviews are also shit, moreover if they are paid reviews. It is difficult enough if we consider how to supervise the projects and who exactly will do it.
There is also no authority.

We may not be able to lay this on certain parties to supervise. We ourself who must be also smarter in supervising what projects we will go for investment. By deep analysis and also smart decisions to see whether the project is a scam or not. If they are suspicious of a very nice project to be true and they promise too much, better to stay away from this kind of project.

So many crypto projects are being anonymous and majority of these anonymous projects have become scam project and then why about that? Decentralization of the blockchain determined by how much nodes are running in the blockchain and if the team remain unknown and this will not make the project being decentralized but i think that you didn't understand the main context of this thread. it's about being more transparent rather than become decentralized.


It's not and you're totally wrong about that. OP think projects in crypto need to be more transparent to the its investors and it has nothing to do with how decentralized they are.If you're seeing it correctly if so many scam projects are exist caused by they are not transparent in so many things started from the team, code, supply and many more

Most projects are not transparent because they already have the intention of screwing investors even at the beginning.
So we can really see a lot of projects, it seems promising, innovative but the sole purpose of devs is just to pocket whatever they got from the people who trusted them.
This is hard to determine at the early stage because they will promise to do better or not to scam anyone.
Up until they are already holding funds and decide to disappear along with the funds. Greediness is mostly the root cause of this scenario.

The cryptocurrency world should be anonymous by definition. Creating tokens and collecting funds for development of projects gives us freedom but also involves risk. Therefore, the most important thing before investing money is to check the project very carefully. Investing only when we are sure that the project has solid dev team and a great chance for realization and success. Avoid anonymous projects and you will reduce the risk very much.

Should be pseudonym caused by it can still be traced if you are doing some efforts to do that. Anonymous is for people who have been using zero knowledge procotol which was so hard to be traced.

Agreed but the main point is transparency must be the first thing. KYC team, audit code, Financial reports and many more must be transparent with the investors of their project.


I do agree with this. As investors and we can sue them to be transparent in all of aspects.

Satoshi was anonymous for a reason but the crypto world does not need to be. Satoshi did not ask anyone to buy their coins and these coins minted were never Satoshi's to begin with. But crypto projects sell their tokens at the same time remain anonymous to a large extent. Lack of legal machinery in this makes it even more tough for a disgruntled investor to seek justice for the fraud.

It does not equate to freedom at all. It only increases the risk. Crowdfund a project on a site that legally does so at least has some legal backing in case the project backs out. But in crypto such things are not existing, making it an easy playground for scammers, unless investors learn this.

Which is like exactly zero percent of the projects that have been developed.

Correct but there are lot of factors to consider here. Better and safer to always stick to bitcoin.

I disagree, satoshi never held an ico or any of the things devs do these days now to try to gather funds, satoshi developed bitcoin on his own and when he thought it was ready he revealed his invention to his peers and the world at large.

You cannot compare satoshi to the profit hungry developers that we have now that only care about the money in their pockets and nothing more, however if someone released a coin in the same way that satoshi did without asking for anything in return then it is fine if they wish to retain their anonymity.

The SEC is trying to do all that, but its authority is limited to the USA. so they don't have more power to oversee the fraudulent projects out there. after all, even if there is a supervisory agency, decentralization will be the biggest obstacle to their efforts. there are many projects that are released anonymously, and this is a problem in the crypto industry.

The crypto currency market is a decentralized market. There is no central organization that controls the market or the development of the projects. Hence the "development of tokens" cannot be "supervised" by anyone. Anyone can create a project, make tokens for that project and release them on the market. No one can stop them. You only have to be very careful when choosing projects to invest in. Do your own research and avoid those scam projects. Their scam becomes very obvious when you dig into their project a bit.

You said it, the space is a Decentralized one and there is no specific person or group assigned that responsibility :( so this is where we find ourselves. Until there comes a time when the Crypto space will get to that regulatory level, this will continue to happen since it is obvious now how much people make out of creating and hyping a crypto project even without use.

The regulatory bodies similar in function to SEC in many countries have been trying to do that.

The point remains same, these bodies can help keep veteran investors at bay from cash-grab scams but the real target are the newbie traders who have a dangerous level of enthusiasm about cryptocurrency and willing to spend a lot here. These people need to be educated first and then shown how scammers operate in order to learn how to avoid them.

The development on the other hand cannot be stopped directly by SEC, because then it would go underground and keep doing the same thing. Rather there should be a regulation of the funds being raised, their legal problems and so on. This is only a starting phase and I can assure you that the ones who were going to scam investors, have already done so and they have left the grounds ripe for legit projects to take over.

The only way to combat this is education keep educated and help people become educated on how Cryptocurrency works and the nature of projects, letting them know that not everything you see here is profitable and has usage, there are a lot of fake projects and they are targetting uneducated investors because scammers thrive on investors' greed, we don't have to blame the decentralization and open-source of Cryptocurrency but we owe it to ourselves to educate ourselves.

No doubt creating a cryptocurrency is easy for everyone and most scammers create and collect the funds after launch, the only way to avoid this kind of project is regulation for every country and if every country will regulate the cryptocurrency and cryptocurrency project will work under the SEC of every county and that will pay high fees as collateral after hat will launch their token or coin and pubic will invest in an automized project that can be safe from scammers but if will not regulate in every county than scammer can scam with public and public should aware and should research before investing in the crypto projects until regulation will not be implemented in that county.

Crypto needs to be regulated, lack of regulation is why many scammers are successful with their scam projects, every investors will only have to invest in projects that are regulated which will kill scam projects in time.

Unfortunately, we are now filled with scam projects, and turning into a rug pull is their new strategy to fool investors. Scammers could now scam even huge investors repeatedly through this but sadly, no one has control over it since crypto couldn't be regulated. The only thing that we can do now is to be wise and skeptical in joining new projects.

Yes, I believe this issue requires special attention because almost every day, new cryptocurrency projects are launched, causing many innocent people to invest in the project, which then turns out to be a scam. If there is a way to introduce regulation or requirements that make it difficult to simply create a scam coin or token, as well as a monitoring body to ensure that fake projects are limited, it would be extremely beneficial because scammers are always looking for new ways to make money.

No matter how powerful the SEC is or it could be, it is impossible for them to supervise every single coin ever created, because creating a new coin is as easy as copying the code of another coin, make some minor changes and then release it to the public.

And personally that is the way it should be, I know that there are some people out there that are mad because they lost their money to a bunch of scammers, but that is their responsibility, as they failed to do their own due diligence and now they are paying the consequences of their mistakes, so they have no one else to blame but themselves.

As for an investor, buying bitcoin is a safe and secure bet, this comes from experience and watching markets rise and fall over time. As soon as you delve into altcoins, you bring in risks that are beyond your control. Altcoins have no use case in most scenarios and they cannot compete with what bitcoin has become today, the recognition and infamy that bitcoin has gained over the years, whatever some developer might say.

In the meantime before the regulation can happen, we can keep our vision narrowed down to bitcoin only and then trade. If most users start doing this and forget about their altcoins for now, it can have a positive impact on the market price and eventually they will realize their folly. The problem is that some investors feel the pain of having to hold shitcoin, but it was their mistake getting in. Regulation cannot stop this from happening. This can come only from patience and education about crypto.

Any arrangement in crypto also needs to be studied in depth so that it can benefit both parties, so if it can be good for all parties, then it is not wrong to implement it, but if it will only limit the steps of one side later, then it's better not to exist any arrangement in crypto apart from the problem of fraud which is very common in the crypto space.