How to detect scam token on Binance Smart Chain

[DU18]

Looking for how many address holder coins is important to know about scam or not with Binance smart chain coin, usually on BSC transaction we can see how many holder address and how much supply on investor and developer, if above 60% coin on developer hands is indicated will be scam although have listing on many exchange market, they can sell suddenly with much supply on their wallet, I see several coin did it when success listing on bigger exchange market.

[jostorres]

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.

That's not a copy but that is original if the concept is not found even in a real project. A true copy is when they have no differences to an any existing projects. There are lots of scams in this space but I think it is not impossible to know the legit between the scam, there are pointers in the op that we can use to enhance our investigations when picking up a project.

There are shilling services and alike that are specifically built for these scammers. They can obviously avail it if they have lots of money. If an investor is really afraid, they shouldn't be on that place. If they are afraid they should only invest on projects that already have a working product.

[eaLiTy]

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There are shilling services and alike that are specifically built for these scammers. They can obviously avail it if they have lots of money. If an investor is really afraid, they shouldn't be on that place. If they are afraid they should only invest on projects that already have a working product.

All the things you said are true, mostly all of them assign shills to advertise the project. All of the projects make use of these shills, if not how come projects like Shiba and other meme coins that had a huge hype was able to attract investors. Most of the projects are following the same route to get the project to the masses, either they do airdrops or promotions and you cannot complain them. But you need to check out the team and the project feasibility before investing.

[Ngewex Yuk]

I often receive tokens at BSC in large amounts, when I see the address contract there are already tens of thousands and even hundreds of thousands of holders, when I check on Coinmarketcap there is no token data so I believe this is a token scam, usually they include site address for us to open and even the display like a DEX and need for connecting our wallets.

[dezoel]

I have to say that there is really not that much of an easy "if x happens then y token is scam" type of thing. A project could look like there is nothing wrong with it for years before they end up rug pulling and you would be disappointed.

You have to realize that the early days are the riskiest because they could get out and people would expect that at this point. However, if the project has been around for a year and made millions of dollars to the project founders then it would be harder for it to be a scam. In that case if you invest into something older in the BSC world then there is a lower chance you could lose your money, you won't 100x that easily, but you could at least not be scammed at the same time as well.

[wxa7115]

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.

Even if they are strict enough to filter out most of the scam tokens we also we need to remember that is not the only reason why projects fail in this market.

Projects also fail because of their developers enter a dispute, they did not had the ability to develop the project as they wanted, their vision was simply impossible to accomplish and many other several factors that can make a project fail, and you need to also protect yourself from those projects, because even if they are not managed by scammers the losses that you can suffer can be just as big.

[bsalka100]

Please drop your contact email so our developers can respond to your questions and complains directly.
Thank You

[poodle63]

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.

I think being created by using BSC smart contracts doesn’t necessarily guarantees that the projects is low quality.
you know some projects aren’t too focused in creating smart contract platform, so their own blockchain could always be created at later date.
also, smart contracts exists for a reason, it’s some of purpose is cutting the required resources and time needed for building a projects that are rather focused outside the blockchain itself.
having their own private blockchain also requires great commitment so it’s another resources that’s gonna be wasted, using smart contract for starting up their project is definitely fine.

[Yamifoud]

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.

Yeah, you are right but Binance will take action first before someone will get scammed. It wasn't new to see fake trade volume, fake developer's accounts, and so fake reviews. And I guess, it was our obligation as well to report things like this if we ever see them and protect others from falling into their hands.
Well, some are clear to see as a scam but many were good at hiding which is too hard to detect. We should be careful, otherwise.

[wxa7115]

It's hard to identify a scam project if you rely on their whitepapers or concept. they look real with all the polish they put neatly from the start, tokens from the BSC platform are often the prima donna for a trader or new token seeker with the increase many times since the first listed on the exchange. the big solution is to stay away from the nascent project because 88% is a scam. Buying or investing in coins that have been traded on Binance is a pretty good choice to stay away from scam projects that pop up every day. believe it or not if you are interested in a newborn project you will fall into a fraudulent project this is a real thing that has been experienced by many people.

I do not think that identifying scam projects is difficult as it can easily be done with a 30 minutes research as long as you use some available tools on the internet.

However it is true that it is impossible to distinguish all the scams and as such you will be left with a difficult decision of investing in a particular coin or not, and with this in mind the best solution is what you have proposed, to stay away from new coins, this way most of the coins that were scams or were simply bad projects will collapse before you have a chance to invest in them, now will this reduce your potential profits if you eventually decide to invest in those coins anyway? Of course, but it will also reduce your potential losses as well, and I my opinion that is way more important.

[Godwinpaul]

These points are good in the detection of scam projects but it's impossible to be exhaustive as scammers are always looking out for more ways to rip off unsuspecting investors. The point is for everyone to be careful in their cryptocurrency deals. The issue is not only peculiar to binance smart chain, but all the blockchain in the industry.

[mdzahed134]

"How to detect scam token on Binance Smart Chain"

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

It doesn't mean all of scam coins are developed by using Binance Smart Chain, but it’s true that right now i see most of SCAM coins in BSC if will compare with Ethereum blockchain although BSC is decentralized. And i think also it can be, scammers target BSC because here it's easy to create a new token. Scam coins existence in every blockchain comparatively low instead of BSC.

[LUCKMCFLY]

Now it is very easy to detect them, if you only have marketing promotion on YouTube and by a couple of YouTubers, with a whitepaper where everything looks very impressive and only when you see the promotion they tell you that it has a pre-sale stage and then a public sale is probably that it is a scam, also another way to realize it is by their sponsors, if they see that their sponsors when sending an email asking to see if they are really sponsored and they answer no, it is another indication that it will be a scam.

Another way in which many fall for scams is through telegram groups, and that is when the project is already reliable, many make contracts and publish them to confuse people and many people buy and what they do is buying the wrong contract, this is the most common problem of decentralized exchanges.

[TopT3ns]

Not easy for detecting with scam token on Binance Smart Chain but I see have possibility with looking how many days token locked, this really important to detect with scam token on Binance smart chain because if have guarantee about two or three years locked look safety for coin stable price, but without lock under two months only when time arrive for unlock price suddenly drop and removed liquidity on dapp exchange market, I think without see about how much supply, airdrop allocation but need to know with how long token locked for to know with keep stable price later.

[Marvell1]

"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.

Binance Smart Chain is really attracting a large number of developers and users thanks to its cheap and fast transaction costs compared to ETH. BSC is one of the fastest growing blockchains. So it will not be difficult to understand when scam projects on BSC are quite a lot. But don't equate them all, there are many serious and successful projects on BSC.
Scam projects, they are garbage, so they will develop and creep anywhere, not only on BSC, before when there was no BSC, ETH also had a lot of scam projects created.

[affandi]

The points you mentioned are a bit true but many of the Binance Smart Chain projects you mention are not scams.

(1) Usually I look for a scam binance smart chain project or not, judging by the Website, whitepaper, Roadmap, the team and the community, usually the scam projects are all bot communities, whether it's on telegram or twitter.

(2) The BSC project that is a scam, the project team guarantees a price of x100 when launching and does not carry out audits, KYC or AMA and lacks marketing and unclear vision, mission for the future.

(3) do some research to see the Smart Contract, how the token is locked or not I usually see in the honeypot, although it doesn't guarantee the project is a scam or not.

Looking for a good binance smart chain project is like looking for a needle in a haystack and don't be shy to ask the experts and experienced, The points I mentioned are not all true and do your own research.

[timerland]

It is incredibly important in this day and age to protect your capital by checking out the common signs of a rugpull.

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

These are honestly some of the more underhanded ways that the devs can scam you. They may not necessarily seem scammy to begin with, and may even have a great roadmap, but at the end of the day they can pull all sorts of tricks to manipulate supply and dilute investors and reward the devs disproportionally.

Well done OP on educating the newbs, this will save people thousands of lost coins.

[GEMIN_M4]

"How to detect scam token on Binance Smart Chain"

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

Once upon a time every erc20 token was a scam, that was the way of newbies that came into crypto space in 2018 ( bear market ) they probably make one or two investments that doesn't do so well as they hoped for, I wouldn't have made my 12,000$ in 2021 if I believed that all BSC projects are scam...learn to do research first before saying such statement.

[Ten98]

Once upon a time every erc20 token was a scam, that was the way of newbies that came into crypto space in 2018 ( bear market ) they probably make one or two investments that doesn't do so well as they hoped for, I wouldn't have made my 12,000$ in 2021 if I believed that all BSC projects are scam...learn to do research first before saying such statement.

It means that you have learned a lot about everything in the past and also in the present because the ERC-20 token in 2018 is a trash token which will eventually become a scam and the BSC token whose owner is not clear will also become a scam in the end so it is actually already almost similar to the past although you are late to realize it now.

[redsun114]

Once upon a time every erc20 token was a scam, that was the way of newbies that came into crypto space in 2018 ( bear market ) they probably make one or two investments that doesn't do so well as they hoped for, I wouldn't have made my 12,000$ in 2021 if I believed that all BSC projects are scam...learn to do research first before saying such statement.

It means that you have learned a lot about everything in the past and also in the present because the ERC-20 token in 2018 is a trash token which will eventually become a scam and the BSC token whose owner is not clear will also become a scam in the end so it is actually already almost similar to the past although you are late to realize it now.

There's so much more in crypto and learning everything here can take time but the guy already has some experience in the past because he did not believe in the claim that all erc20 are a scam. It is like they are saying that all cryptocurrencies are a scam or btc is a scam but of course, that is not true, and indeed that only a newbie person will have this mindset.

2018 can be called a bear season and the majority of the coins have fallen, this can give others a false impression that all erc20 coins on that year are trash but few have survived and they are now stronger but we didn't notice it because most people now focus on BSC tokens.