How to Identify Cryptocurrency Scams

[barlo357]

Never saw an article like this before or I just don't know where to look at. The author was able to discuss things that even I can't even think about. A good read indeed since there are technicalities when it comes to identify cryptocurrency scams.

[1714710112]

1714710112

[CROG]

Today that's Not so easy anymore, Try To Stay in contact with the Real Team members (LinkedIN and so on) And Check their GitHub. But even here you will find Scammers. 90% Of the Scams are anyways very obvious but for the 10%. Do not focus on the Things they give away focus on the Thinks they don't (Faces, Addresses, etc) 

[roosbit]

Hey, this recently published article on how to avoid risky investments and spot frauds mentions our forum 

Link: https://medium.com/@Peter_UXer/how-to-identify-cryptocurrency-scams-813c32816ddf?source=friends_link&sk=da150ce8128c348da4b0dfdbf57e8e12

Not a bad read but this information as far as I can see should be for the inexperienced users knowing and learning about cryptocurrency investments through platforms like twitter where investors get lured by shills but honestly I for one know that investors didn't get to where they are by investing blindly, due diligence will always be there.

[thesmallgod]

There are many basic things that you need to know and also, you have to be careful in believing what you are being provided by some site that is always created to list some projects. What I mean is that you need to do your own research. avoid making a decision base on what you are being told or hear. If it an ICO project, you can go through the whitepaper and ask question related to the core features from the team to show maybe they have perfect understanding of what they want to achieve. believe me, many project do not have money to develop a fully functioning website. If I were you, I will avoid those project. there are many online based plagiarism checking website. you can use this to check maybe the whitepaper is being plagiarized

[darylalban]

Why not identify them before they happen with proper technology like those provided by Ciphertrace? They're working much more closely with exchanges and ATMs now so hoping that gets scams down before they approach people

[nydiacaskey01]

When you require your personal data or money in advance.  This is fraud.  Normal companies do not work like that.  I believe that scammers are at every step.  You have to be very careful.

Not all them that require your personal data or/and money in advance are scams. Some ICO's or projects are legit and they will ask your for your personal data and/or money in advance. They are asking for it because they also want's to protect themselves from those who just want to get something like an airdrop. Perhaps if the promise is too good to be true then we should worry that its a scam.

[coin-investor]

Hey, this recently published article on how to avoid risky investments and spot frauds mentions our forum  

Link: https://medium.com/@Peter_UXer/how-to-identify-cryptocurrency-scams-813c32816ddf?source=friends_link&sk=da150ce8128c348da4b0dfdbf57e8e12

There are some points that are not included in my criterias like the twitter analysis, I'm not looking on Twitter when I want to know if the project is a scam, I look on their whitepaper if they copy a big portion of their white paper from past or existing projects, we have reason to doubt the project's concept and roadmap, whitepaper is very important because it is the blueprint of the project, if they copy other concepts, they should at least stated it and they should have permission from the original creator, but they should infuse their own concept .

Another point is the blockchain forensic, they use it to deceive investors, so they will think that investors are coming in to invest thus creating a domino effect scenario.

[gooseman334]

May I ask if there are any "Pre-sale" for Facebook's Libra? I saw a lot of people from my crypto group chat said that they already had some libra in their crypto wallet and convince me to follow their instruction to buy Libra...
I am a newbie in crypto so sorry if my question bothers you. Thanks

[fuer44]

Hey, this recently published article on how to avoid risky investments and spot frauds mentions our forum  

Link: https://medium.com/@Peter_UXer/how-to-identify-cryptocurrency-scams-813c32816ddf?source=friends_link&sk=da150ce8128c348da4b0dfdbf57e8e12

I checked post on Medium. A bit sticky to the topic of scam, but can include more issue that can also help to rid out of the scam.

Never invest in investment sites that offer a smart incentive for referring. Because Referring can bring promoter little money against an investment he brought from investors.

The second thing never gets involved in network marketing (Pyramid schemes.) Because Cryptocurrencies itself don't have definite value as it all depends upon the price of BTC against fiat.

While investing in cryptocurrencies kindly check out in detail report of specification, projection, roadmap, and crew member. It can help to make a decision while investing in cryptocurrencies.

Your explanation is interesting and I think it's true. but the question is how to identify whether crypto is a scam or not, not how to safely invest. what I mean is, an explanation of the scam crypto criteria, for example I took the example in the middle of the project, the team suddenly stopped their project and said there would be a continuation but in fact there was nothing.

could it be like that? I only catch questions from the creator of the topic and I express my opinion.

Thanks

[42K]

It's very difficult to identify cryptocurrency scams currently and this is deception. Many projects may look  authentic with their team members and probably advisors. However these projects may turn out to be fake or scam hence you should not conclude so easily that a project is authentic based on the benefits they are offering.

[Oceat]

It's too easy to identify any cryptocurrency scams and this is happening mostly in altcoins/ICO campaigns. Regardless of the fake team, WP, etc., we still cannot guarantee the legitimacy of a coin depending on the team and their dev, since they could actually change on or after the campaign is done. Greediness will change any human behavior once they saw the money in their hands and this is mostly happening in most projects out there.

[rodel caling]

The second thing never gets involved in network marketing (Pyramid schemes.) Because Cryptocurrencies itself don't have definite value as it all depends upon the price of BTC against fiat.

While investing in cryptocurrencies kindly check out in detail report of specification, projection, roadmap, and crew member. It can help to make a decision while investing in cryptocurrencies.
[/quote]


A lot of pyramiding schemes have an pretty great promises and benefits they can get. But most them are scamm project but not all is scam some of pyramid scheme are legit but sad to say only the people in tough psoition can get huge profits.

[minersday]

Hey, this recently published article on how to avoid risky investments and spot frauds mentions our forum 

Link: https://medium.com/@Peter_UXer/how-to-identify-cryptocurrency-scams-813c32816ddf?source=friends_link&sk=da150ce8128c348da4b0dfdbf57e8e12

Thanks for sharing this article. The best way to identify cryptocurrency scams is having knowledge and understanding the purpose of every crypto projects in the crypto space. With this, you can easily spot scam projects just by the glance of the platform or the whitepaper of the project.  Knowledge is the key element needed to identify scams in the crypto ecosystem.

[ethereumhunter]

Hey, this recently published article on how to avoid risky investments and spot frauds mentions our forum 

Link: https://medium.com/@Peter_UXer/how-to-identify-cryptocurrency-scams-813c32816ddf?source=friends_link&sk=da150ce8128c348da4b0dfdbf57e8e12

Thanks for sharing this article. The best way to identify cryptocurrency scams is having knowledge and understanding the purpose of every crypto projects in the crypto space. With this, you can easily spot scam projects just by the glance of the platform or the whitepaper of the project.  Knowledge is the key element needed to identify scams in the crypto ecosystem.

Although you have enough knowledge and know much details about the project, that is not guaranteed to see the project will be a success in the future. We see many good projects in out there that have a better plan, but in the end, they are a scam and run with the investor's money. There is nothing we can do if that is the case because we don't know and we cannot predict what will they do in the future so I think we need to know about how much money we will use to invest in their project.

[LogitechMouse]

I have watched a video on youtube on how to spot not only cryptocurrency scams but all of the investment scams. There are 2 things that you must aware of before you invest your hard earned money.

1. Guaranteed Returns - Every investment guarantee is only as good as its guarantor. There is no such thing as guaranteed returns in investment. If the company says that it will give you guaranteed 30% monthly, this is a red flag already and you must stay away on it.

2. Ridiculous Rates - The stock market's average rate per year is at around 10-15% and for bonds it is at ~1% per year (numbers may change in different countries). If the rate is greater than this percentages, it is most likely a scam.

Watch it here to understand more: https://www.youtube.com/watch?v=kFHGQcqg6wk&t=165s

[fullhdpixel]

May I ask if there are any "Pre-sale" for Facebook's Libra? I saw a lot of people from my crypto group chat said that they already had some libra in their crypto wallet and convince me to follow their instruction to buy Libra...
I am a newbie in crypto so sorry if my question bothers you. Thanks

Please don’t follow that story, I learnt that we have some group of people already using the Libra coin to scam people by claiming that they are the ones in charge of Libra. When Libra coin would be released, you will surely get an official statement of it from the developers which I dint think there has been any announcement as regards the Libra coin.

The last time I got an information on it was when they declare that till 2020 before the coin can be launched and a piece of information that I got recently stating also that they might not successfully launch the coin because of the series of backlash they are getting from world top leaders standing against Libra coin and its use. Those who have been buying that fake coin will end up regretting for not making their research before buying.

[serjent05]

Another thing, most scam do not have an office or uses a fake office and phone numbers.  They are not registered in SEC or if registered they registered the company offering other services and not as a financial investment.  They often times have people shilling for them and create lots of fake accounts to vouch for them.  They fake data's and often times uses a networking approach to lure more people and spread fast so that they can maximize their scheme in a short period of time before  being found out.

[TheUltraElite]

-snip-

Those two things are pretty basic. Since we have been here for quite some time, I would suggest those for the very much newbies and for the more advanced modes of scams that we see these days we cannot control without stopping investing in ICO/IEO and other such scams. I consider all of those as scams because nowadays dev teams force KYC on a previous done ICO in order to get all their details. This goes against the ideals of crypto and thus newbies must also know this.

I believe the boycott of investments in any altcoins based crypto project is the only way people can save their bitcoins from getting siphoned off. But then again a healthy investment is a good thing to participate in so it also takes away the whales who invest. But being diligent is what I would advice everyone.

[Disrespect_00]

There are certain unique traits of a cryptocurrency that includes decentralization, full transparency through a public ledger, and an open source code that anyone can see. Scams and Ponzi schemes do not possess these common characteristics and are usually centralized and opaque.

The best way to avoid falling into this various scams and shady schemes is to identify common characteristics as listed above. More importantly, Arming yourself with the right knowledge would safeguard you against these Scams.

[matt7]

First thing that you will notice is how the website looks like. If it seems to be like created by 7 years old child, it might be a scam. Then, url link, lot of people mentioned that. The most important part is to read some articles, find opinion about particular platforms, ask questions at forums etc.