How do you make sure a projects funds are safe?

[DarkDays]

there are various ways to do this. check the smart contract. check whether the team really exist. also check the community behind the project to verify if they are in for a hype. check the partnership. WITH These, you can also check the team the audited the platform and their report. this is the most important on the project. the report from the team that audited the project.

So unless you're able to understand programming to be able to go through the smart contract you can check for many things to see if investing in a project is going to pain you later or not.

Some of these is to check who their funders and partners are, how much they raised, the team behind it like do they have any experience, do they have a in house developer etc. On the media side you can check for their social channels and looks at their community growth and engagement. Tokenomics, checking for vesting schedules and team allocation is also crucial.

All of these little pieces will hopefully help you determine what type of project you're about to include/exclude from your investment portfolio, a decision based on facts rather than feelings.

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[sukmo]

You can join their official social media group, inside that group you will get a lot of important information from fellow members about the progress and development of the project.
Don't forget to also read the whitepaper and research who's joining the team to make sure you invest and anticipate bad things in the future.

[wxa7115]

Well it's difficult to verify if that project is real or a scam but if they already developing the product I guess that is enough to me that I trust the project but of course we should not put all our money or our life savings to the project, it is risky. Only invest with extra money.

This is nowhere near enough to verify that your funds are safe when you invest in a project, after all there are thousands of projects that have been left without being finished and any scammer can grab that code and claim that they have been working on an independent project for a very long time and show the code as evidence of their work.

But then you find out that this was nothing more but a ruse to deceive investors but by the time that you do it it is simply too late and it is impossible for you to recover your money, so you need to be very careful as scammers are incredibly ingenious when it comes to try to deceive people in order to get their money.

[xiboothrezi]

there are various ways to do this. check the smart contract. check whether the team really exist. also check the community behind the project to verify if they are in for a hype. check the partnership. WITH These, you can also check the team the audited the platform and their report. this is the most important on the project. the report from the team that audited the project.

even after doing all that we can still get caught in a scam project. There are many fraud scenarios that fraudsters can commit. that is why when investing we must be really prepared to lose, and only use free funds, only invest what you can afford to lose.
I remembered Merlin. one of the projects that was quite successful in the BSC network, its farming and staking offered huge profits, even it was audited by certik, but the ending was painful because the dev team argued that they were under attack so liquidity was destroyed and prices actually fell. many argued that it was a sinister scenario and the dev team ran away.
That being said, there are a lot of surprises in this ecosystem, so really think about the risks and don't just rely on luck.

[yazher]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

The devs themselves need to be transparent and have constant updates to their followers and investors about the development and the progress of the project. Many people don't review the team before they put their money in which is the riskiest thing you could do when you invest. knowing the team behind the project is crucial and also makes your heart feel at ease when they also publish about their partnership which you can also search if it's true or not. if they have those traits then consider your funds are safe and have some low chance to be stolen.

[nurilham]

Easy, you invest in mineable projects like 0xMR and RVN that have no dev wallet, no IDO, and no pre-mine. That way the devs can't dump on you or exit scam.

Not all projects are like 0xMR and RVN. Most projects have dev wallets because there is a token allocation for developers. It will be difficult to join only on the project with the criteria you said before. The reasonable solution is below:
1. Know the team members of the projects in detail
2. Make sure the projects have trusted partnerships
3. Take a look at their community
4. Have convincing whitepaper, including a clear roadmap
5. No bad issues related to the team members or the project itself

[chanler]

The first thing I see of a project is the team that handles it. Here there is a team that is already known to be good and reliable. In addition, I also saw the prospects of the project, if the goals and objectives are good then it will also affect the results. It is indeed difficult to choose a good project because at this time a lot of new projects have sprung up with their respective advantages. Personally I'm also still learning to choose a good project by learning from my own previous experience. Choosing a project should not be arbitrary as long as, we have to really observe and analyze the project properly, the example of the team, the goals of the project and also the progress of the project whether it is good or not. Make sure everything is good so we can get good projects too.

[Luqman]

In addition, I also saw the prospects of the project, if the goals and objectives are good then it will also affect the results.

Be careful to analyze it, it is probably well written on the whitepaper but cannot be applied in fact. There are many projects having great goals on their whitepaper but it doesn't reflect what they did. Check what progress they have reached and the possibility to continue it in the future. If you think it is only applicable in the beginning, while hard to reach the final goal, you are better to not join it. They just try to attract people to invest their funds on thei initial sales.

[7788bitcoin]

There are many projects having great goals on their whitepaper but it doesn't reflect what they did. Check what progress they have reached and the possibility to continue it in the future. If you think it is only applicable in the beginning, while hard to reach the final goal, you are better to not join it. They just try to attract people to invest their funds on thei initial sales.

Having a great white paper does not mean that they will be successful and if you look in the past there were projects that looked genuine but they were not able to deliver what they set out even after collecting millions and the investors are the losers while the developers run away with the collected money even though they did not do anything and that is the risk you need to understand when you are investing in any project.

[XUNing]

project team Check the project developers and people related to the project, whether there are legitimate developers and a trustworthy team behind them.
Community building and management A truly safe and reliable project team will have managers in the community to deal with some problems at any time, and to promote and maintain their own projects.
Before investing in a project, understand and study the project itself, study its roadmap, and reduce investment risk losses as much as possible.

[aioc]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

This is the risk that we have to take all investments have no guaranteed return even a well establish company or Cryptocurrencies suffered losses or go bankrupt, you can lessen or minimize your potential losses by not investing in ICO because they are unregulated and doing research on the people behind the project, and following if they are making progress on their roadmap.

[Sayeds56]

there is no guarantee it will be safe. what we can do before investing is, we really know what we invest with. what I mean is, you need to do all the research you need. such as finding the background of the CEO and team, as well as how to develop the project in the future. however, there is no guarantee that your funds are safe.

It is true that nobody can guarantee that your funds are safe but if the team is Professional and  has good historical record of launching successful projects, the project is backed by strong community and in case of DEFI it should have Audit certificate as well as backed by well known insurance company  then to some extent you should not much worry about security of funds but still no guarantee.

[RussianEnglishTranslation]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

I've been exit scammed and rug-pulled by devs several times so now so I only invest in mineable projects with no dev wallet, like Raven and 0xMonero. Those are the safest options.

[nurilham]

but if the team is Professional and  has good historical record of launching successful projects, the project is backed by strong community and in case of DEFI it should have Audit certificate as well as backed by well known insurance company  then to some extent you should not much worry about security of funds but still no guarantee.

There is always no guarantee for the safety of our funds since we analyze them visually only. I mean we can't check the company office or see the team member directly. The description of the team members from a crypto project can be manipulated, which means it is written with fake information. So, there is still a chance of losing our money here. However, with all those analyses, we have done our best to avoid scammers. Those ways truly minimize the possibility of scammers deceiving us.

[RussianEnglishTranslation]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

There is no way to verify that your funds are safe if they are in someone else's custody. The safest investment is minable cryptos like 0xMR and Raven where there is no team wallet to exit scam or rug-pull with.

[gwdf1]

I always do careful research and here it is what I am focused on. First of all I investigate the idea of the project and its docs, then I overview the team members (their portfolio)  and I also check if any “whales” are going to invest in it. Secondly, I find out about marketing campaigns and social media. Also I get know if there is a big community and there are many people who trust it and want to invest.

[illnino]

Any ideas on how a project can build trust with the community on this topic?

It is true that the main task for projects is to build a strong community and make as many people aware of your project as possible. To have such a loyal community, devs should always show their work and achievements, give bonuses for community members, offer different competitions to advertise your product and encourage people.

[hidingyou]

Hey everyone,

How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money.

What are you looking for to verify that they won't run away with the cash?

Any ideas on how a project can build trust with the community on this topic?

What would you like to see DAO projects do in the future that would help build trust and make sure funds are secure from theft?

For me my reference was go to there Website and try to search their groups if they are truly Exist. And make sure that they started already their projects and if they really legit.

[btc-facebook]

Hey everyone,  How do you verify that a projects funds will not be stolen by the devs? Many projects hold ICO's or some other sort of sale to raise money for development and many have turned out to be scams where the dev steals the money. mWhat are you looking for to verify that they won't run away with the cash?

The team is the main key to find out if the project is legit or scam, if the team is clear then next you have to find out the background of the team, experience is the key to project success.
Next is the progress made, whether the project follows the roadmap or not, if everything goes according to plan, most likely the project is legit, then you just need to monitor what the team is doing, if there are suspicious signs you can get out faster. I've done this method many times and the results are very good.

[bamb]

It may be difficult to secure funds in the custody of project team members as most of the times, they are anonymous.   The solution to secure project funds is for the community of such project must hold project team members accountable for all their actions and sanction should be melted out where and when there is default!  Another solution may be multi sign access to fund by team members and community and trusted escrow as well!