How to detect scam token on Binance Smart Chain

[mysmyle]

As cryptocurrency BTC is growing in popularity that is how a lot of people are investing so much energies to delude unsuspecting investors of their funds.
Due to the availability of smart contracts on the Binance Smart Chain at a very cheap rate and the fact that it requires project creators to fill out only the desired token name, total supply and decimals.

Though some have gone the extra miles to hire good developers who activated additional features like anti whales, antibots, buy and sell tax and the other numerous parameters.

It is now very possible for (would be) project creators to easily create and deploy BEP-20 token on BSC. According to recent exercise I carried out on 100 newly launched BEP-20 tokens 95% of them could not pass the test I subjected them to.

For the case of this piece, I will focus on how to detect a scam project and save your money.

Before I go ahead to mention that, it is worthy to note that the new trends that project creators now use to scam their investors is through the underlisted ways

1. Bogus total supply
2. Large airdrop amount
3. Cheap private sales amount
4. Fair Launch concept

They use the above concepts to attract investors first by giving out hundreds of millions of their token and distribute same instantly or within 48hrs (this will be discussed in details in a different topic).

To detect whether a token is likely to be a scam or not you need to carry out the following analysis

1. You need to sincerely and without bias, study the project whitepaper. A scam project will always use ambiguous words and big grammars to confuse their readers. They would use words like "Blockchain, DeFi, Technology, Node, Proof of Work (PoW), Proof of Stake (PoS) etc. With this they make their readers especially those new to the space to assume that they are well informed about the ecosystem thereby buying their trust with ease.
A good project would outline the core use cases of their token clearly stated on their whitepaper.

2. You should check whether the identity of the team members are known. Most scam projects do not reveal their identities so that they won't be easily traced. Most of them use false or fake names and social links to further buy the trust of their investors.

3. Their telegram group and channel are usually very full but with few real members and more of bots. This makes users who does not know the difference to assume that the project has attracted many persons.

4. They usually do not plan to list their token on a centralized exchange any time soon. They only list on pancakeswap or any other DEX where they can easily rug pull and run with investors money.

5. Most times they audit their smart contract just to entice investors.

6. Lastly, they distribute tokens to their wallets in small units so that it won't be easily noticed or observed to be their wallet.

7. They carry out long pre-sale period spanning between 3 to 4 months which allow investors to buy any amount. This is to enable them to raise as much fund as they can because almost anyone can afford their pre-sale.


These are a few point out of many on how to detect a scam project. Before deciding whether or not to invest in a project it is very necessary that you carry out due diligence to help you make informed decision.

If a project does not have a clear use case for their token or they have an ambiguous use case or unrealistic use cases then it is possible that the project is a scam.

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[ryzaadit]

A point wants to run out for this:

(2) Not every team anonymous is a scam, also it depends on the type of the project too. Example, team with privacy coin, mostly they want to hide the privacy team that's why they hide the information. As long the project it's running and development is good, no problem at all + not ICO/IEO funding from investor. A project with funding raise, they must share the team information.

(3) You can't handle this, most of the projects have many member because airdrop/promotion scheme. I don't think put this as advice to detect scam project is good

(4) It's depends on the scammer, they can listed to centralized exchange with less due diligence with cheap price. Example listing on Hotbi, most scammer listing in this exchange because is really easy.

[X-ray]

This is an impossible thing to detect. Sometimes a legit project can also become a scam project as well. Arguing it based on the criteria that you have mentioned above sometime is not working. So many thing needs to be verified to make sure whether that's a scam project or not but again i do believe identity of the scammer must become the most important part that need to be considered as the best thing to determine whether the project has intention to scam other or not.
It's better to avoid to deal with the any token that will always be scam token like meme token or something else. I do know that people these days are hyping meme token but this is so difficult to know which project was scam and which was not.
Cheap private sale didn't mean a scam too. Identity must become the main concern caused by 90% of project created by anonymous developer was a scam.

[tippytoes]

This is an impossible thing to detect. Sometimes a legit project can also become a scam project as well. Arguing it based on the criteria that you have mentioned above sometime is not working. So many thing needs to be verified to make sure whether that's a scam project or not but again i do believe identity of the scammer must become the most important part that need to be considered as the best thing to determine whether the project has intention to scam other or not.
It's better to avoid to deal with the any token that will always be scam token like meme token or something else. I do know that people these days are hyping meme token but this is so difficult to know which project was scam and which was not.
Cheap private sale didn't mean a scam too. Identity must become the main concern caused by 90% of project created by anonymous developer was a scam.

It is not impossible to detect because you can already see some warning signs along the way. Like for example, if the project is posting fake photos, this for me, is a red flag. Check also their road map, or whitepaper, if it is just a generic roadmap or copy-paste whitepaper, high likely that the team has no long-term plans for the project. There are some indications on how to detect possibly scam project. But you need to be aware of what's going on if you are heavily invested on one.

[ItsNotSean]

"How to detect scam token on Binance Smart Chain"

If it's on Binance Smart Chain, it's a scam.

[GreatArkansas]

"How to detect scam token on Binance Smart Chain"

If it's on Binance Smart Chain, it's a scam.

Agree! Binance Smart Chain is a red flag for me, once I saw altcoins that are built on Binance Smart Chain (BSC), the red flag was already for me.
But I believe there is a lot of good projects there also, like some projects started to that chain and later on, they will migrate on other chains.
I believe that most of projects right now on Binance Smart Chain (BSC) are just want people's money, most of them are not legit.

[crwth]

I somewhat agree with what ItsNotSean said, and it's something like that. It's almost always going to be a cautious approach towards what you will invest in BSC. They do it because it's the easiest way to create a new project, and the fees are more minor, superiorly way less, than ETH, so that's why "possible scammers" use BSC. I think it's good to be generally skeptical towards the project, but it's essential to invest in things you think will be valuable in the long run.

[bitkanu]

If it's on Binance Smart Chain, it's a scam.

It seems like binance smartchain has a new reputation among the crypto users to be the layer 2 blockchain dedicated to the scam token. Bunch of scam tokens are coming from there. BSC makes the market getting flooded by so many shit scam token. I do agree with what you have said. Almost all of tokens on binance smart chains were scma tokens. It's hard to believe if people would be able to avoid the scam token by doing their own research. too many scam token even make people feel confuse about how to know the different between both scan token and legit token.
sometime the token that we called that as legit token has become a scam token and otherwise opposite thing will happen.

[michellee]

I am not sure what I find, but I see a website that you can use to check the project on one thread here about airdrop from BSC.
https://www.bscheck.eu/
https://tokensniffer.com/

But I do not really understand how to check the project token or know if that project is a scam or not. I also forgot the thread name as that is about 6 months or so. But you can try to search for more.

Or you can search from Google to find how to detect scam tokens on BSC.

[cheezcarls]

"How to detect scam token on Binance Smart Chain"

If it's on Binance Smart Chain, it's a scam.

Not all though. It doesn't mean that all projects who are using Polygon, Solana or any other blockchain are legit either. I don't mind about the blockchain, coz' the legitimacy of the project and team is what matters to me most. Just saying.

If you want to check if a certain crypto project is a potential rug or not, you might wanna try Ruggy Buster which is on Telegram that can check and analyze smart contracts. I'm just suggesting to help.

[X-ray]

This is an impossible thing to detect. Sometimes a legit project can also become a scam project as well. Arguing it based on the criteria that you have mentioned above sometime is not working. So many thing needs to be verified to make sure whether that's a scam project or not but again i do believe identity of the scammer must become the most important part that need to be considered as the best thing to determine whether the project has intention to scam other or not.
It's better to avoid to deal with the any token that will always be scam token like meme token or something else. I do know that people these days are hyping meme token but this is so difficult to know which project was scam and which was not.
Cheap private sale didn't mean a scam too. Identity must become the main concern caused by 90% of project created by anonymous developer was a scam.

It is not impossible to detect because you can already see some warning signs along the way. Like for example, if the project is posting fake photos, this for me, is a red flag.

Yeah that's it but it needs a deep research. These days people are so lazy to do that and they keep going in the project that already known as a scam project. People these days very strange.

Check also their road map, or whitepaper, if it is just a generic roadmap or copy-paste whitepaper,

Mostly paid someone to write the same roadmap over and over.

high likely that the team has no long-term plans for the project. There are some indications on how to detect possibly scam project. But you need to be aware of what's going on if you are heavily invested on one.

The plan can change anytime and i can't agree with this. The plan needs to adopt with the condition in the market. i see that some projects like crypterium which was still running its old plan but it gets killed by himself caused by it can't follow the new trend in the crypto. The plan must have followed the crypto trend to make sure if the plan will be working.

[FairUser]

In fact, anything that is not transparent tends to be a scam, and BSC is a place where scammers can do it at a low cost to create junk products. The simplest is seeing how the project actually exists, I believe that spotting a scam project is really easy even for newbies. Low volume, dev team holding a lot of tokens, team being anonymous, following trends with silly promises,... and more importantly still being ourselves, need to update our knowledge and don't let it being drawn in by his own greed.

[fvb]

I am not sure what I find, but I see a website that you can use to check the project on one thread here about airdrop from BSC.
https://www.bscheck.eu/
https://tokensniffer.com/

But I do not really understand how to check the project token or know if that project is a scam or not. I also forgot the thread name as that is about 6 months or so. But you can try to search for more.

Or you can search from Google to find how to detect scam tokens on BSC.

Thank you for suggesting useful search tools. Previously, I did not attach any importance and thought if the token is traded, then everything is fine. And in this case, as in principle, there are pitfalls everywhere. Now I have revised my views on some tokens that I wanted to purchase for myself. It is necessary to use all the tools for study and analysis, and not be led by statuses and comments.

[DU18]

Ever found scam coin but not fully scam but not believing when listing Binance exchange market price drop drastically from $30 become 6$ after several days active trade on Binance. First I invest with HIGH token before listing on Binance, price keep consistent above $30 and drop under $29 only, but when dev announcement for listing on Binance price suddenly pump and I saw much coin from developer sending to Binance exchange market, exactly after active trading almost 40% supply coin sold by developer and make price drop almost 40%. Not all coin when listing on Binance potential to pump.

[asyakashi]

Scam tokens usually have no progress at all. they just hype their tokens like exchange and also burning. They will never show how their team works or token utility. Usually their social media is full of big sales and promotions and discounts.

[Psynthax]

Your explanation already covered all of important points. The only problem whether people can analyze all of those points or not. Sometime people need to focus into the some important things like the smartcontract, identity of team must be known by the investors but without the help from the 3rd party and this is not possible. KYC must become the main thing that might be done by the team.
It's easy to say but hard to do. I have been trying those things but sometime im facing the difficult situation caused by the team didn't provide enough information and i can say that's a scam project.
Im always trying to avoid any project with only a few information about that.

[takngantuk]

"How to detect scam token on Binance Smart Chain"

If it's on Binance Smart Chain, it's a scam.

not all are scams, there are some that look good. pancake or safemoon is one that is worth investing in. so not all projects that use the BSC network are bad and scam. Actually, from the start, projects that use smart contracts can be categorized as bad projects. because almost 90% of projects that don't have a private blockchain end up dying or failing. only a few survive, and even then very few. so it's not only in the binance smart chain, projects that use other networks must also remain under suspicion.

[Beparanf]

"How to detect scam token on Binance Smart Chain"

If it's on Binance Smart Chain, it's a scam.

Most bullshit and lazy excuse from person that didn't want to DYOR. Scam project exist in all blockchain since it's easy to setup smart contract nowadays by just buying a ready to go code for a copy project while paying minimal fee for minting your own tokens. It's absurd to blame the Blockchain itself and mark it as general scam while it just host all the dapps running on it. There's still a lot of scam token on ETH compared to BSC. The only reason why BSC is an easy target by scammer is due to the fact that it has vast number of investors using it. Don't generalize!

[asus09]

The digital world is increasingly popular in almost all circles, but we must not be careless, because scammers are even smarter than us, they must have a thousand ways to detect the tokens we have, confirm the token is supported by a functioning and actual blockchain, which can be verified. tracked by you and everyone, so we don't become victims of their scams..

[Henrobakkara]

"How to detect scam token on Binance Smart Chain"

If it's on Binance Smart Chain, it's a scam.

So are you trying to say that scam cryptocurrency projects started from the Binance smart chain? Are you for real? we have been having scam projects in the space since before BSC was developed, if you ask a lot of people here to list the first scam coins or failed projects they still hold in their wallets today will definitely without a doubt be from Ethereum Network like most I have in my wallet from 2017, should I now conclude that projects on ETH network are scams?