How to detect scam token on Binance Smart Chain

[mysmyle]

I think this is hard to detect, I often use many techniques to know about scam projects in BNB or other projects, scammers are trying to make projects or anything like real and the easy thing is to ask for advice from experts on telegram or discord discussions.

Very true. Most of the times these scammers spend thousands of dollars to execute everything with massive and extensive marketing and make the project look quality but with evil intentions

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[masterrex]

"How to detect scam token on Binance Smart Chain"

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

IMO, I think it was a very shallow observation, I dont know if you really mean it or it's just a sarcastic notion but all I can say is not all projects on Binance Smart Chain are scams many are still good, and performing well. and one more thing scammers are not settled on a specific blockchain they are everywhere even in Ethereum there are many scammers too so it's very unwise to tell that if it was on BSC it's a scam.

[Reid]

It's helpful, thank you. I appreciate the effort of going at this length to provide warning to co-investors in BSC projects.
I have my own standards when it comes to this, and I would gladly recommend for other investors to do the same so that you won't miss a thing and all stains will be checked.
1. Team. Very important for me. But some successful developers do explain why they cannot expose themselves like a threat because their place is not in a safe environment. You would have to try another approach if you will force them to do so. i.e. video call with an agreement to not expose them.
2. Locked tokens. Be sure it is locked and the span is how it is told in the whitepaper.
3. Item/Product. What is the purpose it? Will it really have a chance to explode long term? What is backing it up?
and more...

[LostEcho]

Some people are trying to make binance smart chain looks like the real culprit but they are wrong, bsc only solves high gas fee I don't know why people aren't appreciating this, scammers use bsc to also avoid spending more money on gas fee too sigh.

[mysmyle]

Some people are trying to make binance smart chain looks like the real culprit but they are wrong, bsc only solves high gas fee I don't know why people aren't appreciating this, scammers use bsc to also avoid spending more money on gas fee too sigh.

You are very correct. That's one of th advantages of BSC over Ethereum Blockchain. But it is also a big disadvantage now to many because of its low cost. However, they cannot be blamed because their intention was to solve the problem of high has fee associated with Ethereum

[wxa7115]

I think this is hard to detect, I often use many techniques to know about scam projects in BNB or other projects, scammers are trying to make projects or anything like real and the easy thing is to ask for advice from experts on telegram or discord discussions.

While it is true that scammers can spend a lot of effort into making their projects look as real as possible, the truth is that as long as you do your own research and investigate the project properly then you can identify most of the scams anyway.

However this leaves a small amount of coins that are so well disguised that you could still invest in them and lose your money, so how to deal with them? And the answer is simple, you wait months or even a year after the coin is released before investing in it, most scam coins would have collapsed already or are on their way to get there, while the coins that are legitimate will still be strong even after that amount of time has passed.

[Kelvinid]

I suppose to believe that there is no such thing found in Binance as they are strict enough to regulate projects that have questionable developers and fake amounts.

But anyway, aside from those you have mentioned OP, seeing the name of the project will sometimes give us a hint if that is legit or not. And to make proof of it we need thorough research in order to have a final say. That is why if we have the doubts inside our mind, we better to follow it as sometimes our instinct save us.

[TelolettOm]

"How to detect scam token on Binance Smart Chain"

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

Wasn't there a lot of tokens from ERC20 before which were also scams and shitcoins?
Indeed, we can't avoid them if they have the potential to be scammed. However, not all tokens on Binance Smart CHain are scams. And so it is in several other networks such as the Ethereum chain and others.
This depends on the individual project, yes although it's a little hard to tell the difference.

[crwth]

I do not agree with you at all. Every good project developer should choose solutions that will be the most convenient and cheapest for the project, as well as for its investors and users.

I’m not saying that everything in the BSC Is a scam it’s just that most people tend to use it for those reasons.

At the moment, Binance Smart Chain offers perhaps the best conditions. It is natural for me that most new projects are created on this platform. The claim that all, or even most projects created on BSC are scams may indicate that you are unable to analyze and recognize a good project from a scam.

I think I can analyse pretty much the project but unless something happens like a rug pull it would be deemed as legitimate project and then may be out of nowhere become a scam. Going to be pretty hard to really know if it is worth it to invest but make sure to invest what you can afford to lose.

[LogitechMouse]

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.

Studying the whitepaper is always a top priority when it comes to investing into new projects.
On the other hand though, I've seen numerous projects with very good whitepaper and it looks interesting but ending up as a scam so...whitepaper can also be a basis but just be vigilant still.

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.

This might be the case back in the days where ICO's are still popular but right now, there are some projects who are successful at least but the team members are still anonymous.
After all, developers being anonymous are still a red flag for me because anytime they can run away with the investor's money without any trace whatsoever.

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.

Telegram? Its full of scams and bots like you said and I don't like the platform as well.

Overall, what you all said was true but in the end you will not know which projects are scam and which are not. There is a famous quote saying that a project can't be called a scam until it turns out to be one. As long as there are developments, communications from the dev etc. it will still not be a scam even though everybody is saying that it is.

[Pejoh Asu]

The convenience and low cost of making tokens in BSC makes scammers actively use BSC tokens for scam projects, moreover it is easy to add them to a Pancake swap at a cost of around $ 5000 so that scammers will continue to be present, of course it is difficult to know whether the project is real or a scam but what I usually do is follow discussions and suggestions from third parties like in this forum.

[casperBGD]

I treat all projects on BSC (now BNB chain) as scams, unless proven different
there is a lot of scam and spam on the platform, that is really becoming unusable, and it is better to skip new projects, than invest and be part of rug pull in the end

maybe funding by Binance could be a good parameter that project would not go away with a rug pull, but cannot be parameter that project would succeed

[evilgreed]

               Just go ahead and avoid binancechain created coins man, make your life easier. But if one really wants to gamble a bit those pointers are good but not flawless. Just like any other ways out there, it only increases the odds on your favor. For me, checking the community, partners, marketing and timeliness on road maps. I check tokenomics too and how hands on the developing team are with the project and if available, check their backgrounds. I don't just go and cancel out some coins just because developers are anon. There is so much more to a project than just revealed identities(although that gives much confidence for investors).

[TastyChillySauce00]

any altcoins that usually imitates the already existing and succesfully created shitcoins and memecoins are usually just scam and gonna be having a really high chance of becoming a scam even if they performed really well.
there are someone here saying that if it’s in binance smart chain it’s just a scam and you shouldn’t get invested in it and that’s kinda true because binance smart chain itself heavily invested by some scams and it has already make so many newbies in investment losing their investment basically get scammed heavily.
if you can, just avoid using BSC that’s already infested with scammers instead, try something like matic and the likes

[Sled]

Things that we need to check upon evaluation if the project is good or scamming.

*Liquidity - inconsistent trade volume, probably faked
*Exchanges - not known/new exchange
*Team members/Developer - no legitimate background

Some projects are found to be obvious but some are not that is why we have to conduct more research/digging just to sure that we are in buying the right one.

[robelneo]

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.

Any project cannot keep up or will not stay long in the market without use case and trust coming from its community, we have seen so many pumps and dump coins coming out and after a few months we never hear any more from the developers or they are losing volume and price sliding, it's very important what the project can contribute and how they interact to the community, without these two the project is sure to die.

[Pujangga]

It is very difficult to detect a project scam, they copy everything that has ever been done by real projects, they even pay admins on telegram or discord groups who are on standby 24 hours to monitor discussions and direct investors to invest in their projects, and this is what makes investors afraid to invest in ICOs.

[molsewid]

It is very difficult to detect a project scam, they copy everything that has ever been done by real projects, they even pay admins on telegram or discord groups who are on standby 24 hours to monitor discussions and direct investors to invest in their projects, and this is what makes investors afraid to invest in ICOs.

Actually this is what every traders and investors would like to know to spare themselves from scammers but unfortunately no one have invented any tools or device to determine scam projects or even no one knows exactly how to determine a scam project but through reading their wp and determining the uss case of a project. If I could only know something that could help us determine the scam project I will not going to hesitate to share it here in forum.

[Anonylz]

I really have to disagree to some extent with 1&2 -
1. Bogus total supply
2. Large airdrop amount
There are several projects with a huge total supply like tron for example, can't use supply as guaranteed yardstick,
Also large airdrop amount, there are projects that mainly airdrop their tokens to dedicated community members and never did any sales, just a community driven project, that's also not enough to term such project as a scam.
I think, these days it is very difficult to attribute certain characteristics to determine a scam project because these scammers are getting better daily and they go the extra length to try and fool investors.
Since they know people are constantly looking out for these signs, they keep changing and updating their cruel methods.

[tbct_mt2]

Look at tokenomics and top wallets first. You don't must be a programmer to smell something wrong from top addresses. If you see top wallets hold huge tokens, they can dump it when smart contract for locking those tokens expired. After vesting time, they can dump all tokens they have in such top addresses.

It is one of signals of something bad exclusively scam tokens. Even it's not a scam token,  it is still bad because huge dumps will bring price down to the hell in seconds.