How to avoid a scam project?

[FireDAO CY]

There are so many new projects launching everyday and some of them can be good and some of them can be a scam as well. How can we identify it well? Perhaps we should have more discussion about it so we all can learn from everyone's experience.

[rhomelmabini]

There are so many new projects launching everyday and some of them can be good and some of them can be a scam as well. How can we identify it well? Perhaps we should have more discussion about it so we all can learn from everyone's experience.

Check first on what are they trying to achieve, if it's nothing new then it was likely just to drain investors pocket, check if their team is legit, check if they're connecting with any real people, company or organizations, their white paper and lot more to check. I'm not saying this is always but the likeliness is weighing it that it could be one.

[Freddie Boyer]

I think there are many ways to avoid falling prey to scam projects, it's important to be careful and do your due diligence. First, research the project team and their previous work experience to determine if they are credible and able to deliver on their promises. Second, scrutinize the project whitepaper and its technical aspects, ensuring that the proposed solution is feasible and innovative. Third, investigate the project's community and social media presence to gauge its popularity and reputation. Fourth, beware of unrealistic promises of returns or aggressive marketing tactics.

Finally, seek the opinion of an expert, either a friend or anyone who is adept at learning. Well, By following these steps and maintaining a healthy skepticism, I think one can avoid scams and make sound investment decisions.

[Jackl87]

There are so many new projects launching everyday and some of them can be good and some of them can be a scam as well. How can we identify it well? Perhaps we should have more discussion about it so we all can learn from everyone's experience.

Scams really are a big problem in the crypto space. Probably because it is pretty simple and also pretty cheap to create another crypto project. You just fork some other already existing project and pay the minting fee and that is pretty much it. You don't even need a team for it. One guy that has watched a tutorial video or read a little can do it. Most of those projects are meme-coins (=shit-coins)
So my first advice would be to totally ignore meme-coins because there the chances for a scam are the highest because of the reasons i stated above.
If you are investing into a project, that really wants to solve a problem or is trying something new, then you should always do your research. Take a look at the team, check if they have a linkedin profile or something, read the whitepaper and the roadmap and look if it makes sense. Also check the tokenomics of a project.

[Godday]

You can check their website. Compare with some projects that have committed fraud and fraud. Scam projects usually follow the same pattern. They design the website as attractive as possible, make a promotions (possibly using funds from previous scams) and they have incomplete expert profiles and do not have valid records on their information. I advise you to study in this forum the history of projects that have been scammed before.

[Ojima-ojo]

There are so many new projects launching every day and some of them can be good and some of them can be a scam[/colour] as well. How can we identify it well? Perhaps we should have more discussions about it so we all can learn from everyone's experience.

In every 100 new altcoin projects, almost 90 are scams, that is how bad altcoin projects have become since if inception,  and for you to avoid scam projects the first rule is total avoidance of altcoin projects because even the most successful altcoin today can become scam tomorrow so it can not be trusted for long term investment.


And if you must invest in any altcoin, it then means you will have to do tons of personal research, going deep into the investigation of the key features pf the project and trying to match them with another already existing project, and even at that, you must not rely on altcoin for long term investment in other to minimize your risk ratio since altcoin is best for short term gaol.

[Apocollapse]

If you want to 100% avoid a scam project, just stick with Bitcoin and don't care with anything else.

If you want to minimize the risk of investing in a scam project, you need to make sure the project is already old, not following the upcoming altcoins trend and it should be listed on popular centralized exchanges.

If you not follow one of requirements I mentioned above, you're gamble on altcoins and you have a chance to invest in a scam project.

[alik111]

It's very confusing to choose a project legit or not but it's not impossible. You should research their white paper and website properly if they are promising and team has good reputation then it might be a legit project. If any project launch their product by copying others and generate fake community member then it might be scam so research deeply then avoid that projects which seems to be a scam.

[lovesmayfamilis]

There are a lot of signals that can make it obvious that a project might be a scam. Firstly, if the OP has a similar question, I can ask you, OP, since you're also the spokesperson for the new project here on the forum:
Are you conducting a survey on what you need to pay attention to in order to gain investor confidence, or are you interested in personal questions? For me, after spending a sufficient period on the forum, it became clear that if a beginner does not know how to identify fraud, he needs to invest in Bitcoin. This will protect your money as well as your nerves.
No matter how colorful the promises of new projects are, and even without obvious signs of a scam, a lot of new projects do not bring their plans to fruition simply because of a lack of funds.
Therefore, as a result, it can be said that it is impossible to accurately determine the future of new projects. Everything can change in a few days, and only Bitcoin can be trusted while understanding all the risks that may be encountered in the process.

[Reid]

1. Always check the team behind a project. Legitimacy. Proof of identification. Work Background.
If they are trying to be anonymous, then it's up to you if you are willing to take the risks.
2. Whitepaper and Roadmap. They sometimes make their mistakes in this section and if you are a person who likes reading all the details you can pinpoint the mistakes that will make you doubt their project.
3. Promises that are so good to be true. I don't like this kind of invitations, they usually end up a scam. About 90 percent in my experience. Now, I try to take advantage of them by pulling out if I see profits. High risk but could be profitable if done correctly.

[rhodelmabanal]

There are so many new projects launching everyday and some of them can be good and some of them can be a scam as well. How can we identify it well? Perhaps we should have more discussion about it so we all can learn from everyone's experience.

The best strategy is to know the team, we need to known who are the team member that build the project, next is the way how they build that project as investors we need transparency and update about how they develope the projects, the concept and what kind of project it is, is it new or is it something like has the same project with the same concept, there are a lot of ways to know scam projects but scammers are also smart they also make a way to make a fake project become realistic so we still need to be careful.

[MAAManda]

Check first on what are they trying to achieve, if it's nothing new then it was likely just to drain investors pocket, check if their team is legit, check if they're connecting with any real people, company or organizations, their white paper and lot more to check. I'm not saying this is always but the likeliness is weighing it that it could be one.

Some of the examples you mentioned are not absolute examples of how to identify a scam project, for example:

- About what the project wants to achieve, there are currently a lot of L-1 projects that want to solve scalability problems, is that something new? of course not, for example the Aptos (APT) or Sui (SUI) projects.

- About the legit team, I want to ask you, is the Shiba Inu (SHIB) project a scam project? because until now the developer of this project is a Pseudonym. It's not, right?

There are so many new projects launching everyday and some of them can be good and some of them can be a scam as well. How can we identify it well? Perhaps we should have more discussion about it so we all can learn from everyone's experience.

The easiest way for me to identify a project is a scam or won't last long is by the way they drive the community. If a project only focuses on price, they will 100% scam. I've seen a lot of projects like this, so my opinion is based on my observations of various degen projects.

[Suguha]

By assessing the essence of the whitepaper as it depicts the necessary information regarding the project’s main purpose. Thereby, you will be able to identify the red flags regarding its structure. To be specific, the word choice, grammar, and spelling. It is important, as some scam projects shares similar characteristics when it comes to their whitepaper. Some whitepapers are grammatically incorrect, have wrong spelling, and make improper use of apostrophes. It may seem small, but taking a risk is a crucial decision, so we must consider these things. You can’t easily trust a team that provides such information when they are not even able to effectively and properly communicate their project’s information. 

[rhomelmabini]

Check first on what are they trying to achieve, if it's nothing new then it was likely just to drain investors pocket, check if their team is legit, check if they're connecting with any real people, company or organizations, their white paper and lot more to check. I'm not saying this is always but the likeliness is weighing it that it could be one.

Some of the examples you mentioned are not absolute examples of how to identify a scam project, for example:

- About what the project wants to achieve, there are currently a lot of L-1 projects that want to solve scalability problems, is that something new? of course not, for example the Aptos (APT) or Sui (SUI) projects.

- About the legit team, I want to ask you, is the Shiba Inu (SHIB) project a scam project? because until now the developer of this project is a Pseudonym. It's not, right?

You could have read my latter sentence if you're being intelligent on that stance. I'm also saying they are not an absolute example tbh. There could have been some exceptions of course.

The easiest way for me to identify a project is a scam or won't last long is by the way they drive the community. If a project only focuses on price, they will 100% scam.

You should have known Terra and FTX that wasn't focusing solely on on the price yet they scam their investors. Scammers tend to learn that trick and they are hideous now more than ever.

[irsykes]

some of the people above said there was some truth to it from a material standpoint. but the project is not always clear, the team is legitimate. the project partner is clear, it has not been determined whether a project will run smoothly. maybe what we hope for is the core price of a significant new coin, which will be able to last for how long. because a great project may not necessarily be able to survive in the long term

[Yogee]

How to avoid? Don't invest in any new coins or tokens hehe. It's still not a 100% guarantee but it is the best way. Even scammers can come up with decent looking whitepapers and roadmaps. They can also fool many non-technical buyers just by showing certificate of audit from reputable third parties. We've also seen many times that they can start well and show potential then the rugpull or "we've been hack" comes.

[Rampagoe004]

I advise you to look at various reviews from experts in the crypto field. In my view it's a little difficult to see if the project is a scam or not. I don't understand how scammers work but what I see is they offer amazing numbers. They offer amazing returns that are earned in no time.

[MAAManda]

You could have read my latter sentence if you're being intelligent on that stance. I'm also saying they are not an absolute example tbh. There could have been some exceptions of course.

Ok, no problem, this is just a misconception, but it would be better if you tell more specific characteristics, because the characteristics you mention are the characteristics that some well-known projects have as well.

You should have known Terra and FTX that wasn't focusing solely on on the price yet they scam their investors. Scammers tend to learn that trick and they are hideous now more than ever.

TBH, I can't consider projects like FTX or Luna to be scam projects, because here we are talking about something more specific like a planned scam. FTX or Luna can be described as an accident rather than a (planned) scam. [If you know the actual chronology of the 2 big projects].

[maydna]

There are so many new projects launching everyday and some of them can be good and some of them can be a scam as well. How can we identify it well? Perhaps we should have more discussion about it so we all can learn from everyone's experience.

I think it's hard to identify new projects that will be a scam because everything looks fine in the initial launch but usually, the projects will start too late to provide updates like they have in plan. But that's not always the case because it's possible that the project ran into some issues before they did the update, making them delay it.

For the better, maybe you don't need to approach new projects and stick to old ones that already have the potential to grow. And if you are confused and don't have any info, you can stick with bitcoin because bitcoin won't let you down.

[judaspriest]

I advise you to look at various reviews from experts in the crypto field. In my view it's a little difficult to see if the project is a scam or not. I don't understand how scammers work but what I see is they offer amazing numbers. They offer amazing returns that are earned in no time.

Correctly detecting the project is a scam or not is not an easy matter,
even if we have done research I don't think it's a guarantee either,
maybe we need to consider a lot of good things on the results of our own research and advice from experts.