How to check if an altcoin is a scam

[Makus]

Scammers mostly target retail investors because institutional investors have the resources and manpower to research a project before making any investment. So there is no way an institutional investor will fall for some high-paying farming contract by some scammers. There are mostly some retail investors who chase high rewards in multiple project and end up being rug-pulled by one of the projects along the way. The most common way for scammers to attract retail funds is by providing a high incentive for joining the project.

That's correct, since institution investors use higher funds for investment, they make sure they are focusing on the right project before puting in a dime. I have never heard, a whale in the market got scammed by scam project. So if only we can dig deeper then you can find the right coin to invest in. But since most scam project now have so qualities of a legit project, it would be difficult to just differentiate them by doing small research.

[odunybiz]

Scammers mostly target retail investors because institutional investors have the resources and manpower to research a project before making any investment. So there is no way an institutional investor will fall for some high-paying farming contract by some scammers. There are mostly some retail investors who chase high rewards in multiple project and end up being rug-pulled by one of the projects along the way. The most common way for scammers to attract retail funds is by providing a high incentive for joining the project.

That's correct, since institution investors use higher funds for investment, they make sure they are focusing on the right project before puting in a dime. I have never heard, a whale in the market got scammed by scam project. So if only we can dig deeper then you can find the right coin to invest in. But since most scam project now have so qualities of a legit project, it would be difficult to just differentiate them by doing small research.

As an individual, even with enough research you may still fall in as victim for scammers. Crypto scammers are just becoming more expert this days. They make things so real that it becomes difficult to identify a scam project from the real one. But my question here is "how do this institution investors make their research?" Do anyone here know any institution investors that one can follow for good projects?

[shinratensei_]

As an individual, even with enough research you may still fall in as victim for scammers. Crypto scammers are just becoming more expert this days. They make things so real that it becomes difficult to identify a scam project from the real one. But my question here is "how do this institution investors make their research?" Do anyone here know any institution investors that one can follow for good projects?

every popular investors like binance labs and so on always announce their investment in their blog, or if you want to know which project are invested heavily by some big investment company try dropstab this platform present you with the data, but for larger insitutional investment company that manage billions they usually just gonna stick with the major coin like bitcoin and ethereum since they have big capital investing in it worth it for them because 30% increase alone already grow their billions dollar capital and will easily give them hundred millions of dollar increase.
its simple math really, the big investment company always stick with relatively low risk asset.

[johnsaributua]

That's according to dappradar what about your experience? I think everyone has experience and scrutinizes every project that will be followed, especially a dapp that is connected to a personal wallet with a foreign website beforehand to buy altcoins. I read in this thread maybe I'm not the same because of the views of some people, I agree that altcoins also have the right to show the process, including the initial purchase on dex, even many have profited from this initial purchase, because if it is already on cex in my opinion people's trust is enough and that's where trading takes place, not for investors to buy cheaper, some people may believe, but it doesn't have to be listed on the favorite cex instantly because many dex also behave and have good character until now. the most important thing is that the web is secure not cloning phishing. Also many altcoins have become giants starting from dex and following in cex. if in doubt I make it a habit to use a new wallet or can revoke / disconnect completely even with the service.

[Dr.Osh]

thanks for all the heads up about how to check them as scam or legit but for me if ever
i consider investing in one altcoin? Will just drop the name here and I will let the community answers
this for me because we have lots of great altcoin checker here , those bounty hunters and those
airdrop hunters  are mostly great at these so they will surely help me out about how to find and
what is the faith on that certain project but thank you for this sharing.

It can indeed be a reference in analyzing a project, but I think there will be pros and cons because everyone has their own opinion, unless the project really has clear shortcomings, then I think the opinion you will get is do not invest in these altcoins. However, you also need to develop research skills so that you can also make decisions at the right time, because sometimes, accurate opinions come not at the right time.

[Y3shot]

Scammers mostly target retail investors because institutional investors have the resources and manpower to research a project before making any investment. So there is no way an institutional investor will fall for some high-paying farming contract by some scammers. There are mostly some retail investors who chase high rewards in multiple project and end up being rug-pulled by one of the projects along the way. The most common way for scammers to attract retail funds is by providing a high incentive for joining the project.

That's correct, since institution investors use higher funds for investment, they make sure they are focusing on the right project before puting in a dime. I have never heard, a whale in the market got scammed by scam project. So if only we can dig deeper then you can find the right coin to invest in. But since most scam project now have so qualities of a legit project, it would be difficult to just differentiate them by doing small research.

As an individual, even with enough research you may still fall in as victim for scammers. Crypto scammers are just becoming more expert this days. They make things so real that it becomes difficult to identify a scam project from the real one. But my question here is "how do this institution investors make their research?" Do anyone here know any institution investors that one can follow for good projects?

One just need to be care on the project they embrace, lot of scam projects out there , very attractive that investors would really want to invest think it is a project worth investing to make gains . Despite the rate of scam project that is in the market if good research is done be for investing altcoins it will help and prevent people from scam project.

[Sophokles]

Scammers mostly target retail investors because institutional investors have the resources and manpower to research a project before making any investment. So there is no way an institutional investor will fall for some high-paying farming contract by some scammers. There are mostly some retail investors who chase high rewards in multiple project and end up being rug-pulled by one of the projects along the way. The most common way for scammers to attract retail funds is by providing a high incentive for joining the project.

That's correct, since institution investors use higher funds for investment, they make sure they are focusing on the right project before puting in a dime. I have never heard, a whale in the market got scammed by scam project. So if only we can dig deeper then you can find the right coin to invest in. But since most scam project now have so qualities of a legit project, it would be difficult to just differentiate them by doing small research.

Whales also become victims sometimes due to hacks and exploits, but institutional investors take certain measures to protect their investments from being scammed. They use a multi signature wallet and custodial service provided by top companies that also have insurance. So if somehow anything goes wrong their loss is nominal and they don't feel the pain much like retail investors do. So as a retail invest we needs to be careful about our investment and work with our investment strategy.

[Riginac111]

Many people have different ways to check if altcoins is real project or a fake project, but to know that this project is a good one you have to make a properly search before you can conclude and this particular Project scam Project or not because many people does not cross check they can of Project there are into before they will be able to access it or be able to check it.

So it is advisable for someone to at least make a necessary research concerning imported of any cryptocurrency or investment but the many people they Rush to invest because it is a new one that is being launched so that is why some of them and up of losing their capital during investment of this kind.

What I would advise any person who is interested in any crypto investment to check the project first and know the person that is not the project if really the owner of the project or the team who is on aching the project there are from reliable place when I come they comment to any person to invest in such Project

[Sophokles]

Many people have different ways to check if altcoins is real project or a fake project, but to know that this project is a good one you have to make a properly search before you can conclude and this particular Project scam Project or not because many people does not cross check they can of Project there are into before they will be able to access it or be able to check it.

So it is advisable for someone to at least make a necessary research concerning imported of any cryptocurrency or investment but the many people they Rush to invest because it is a new one that is being launched so that is why some of them and up of losing their capital during investment of this kind.

What I would advise any person who is interested in any crypto investment to check the project first and know the person that is not the project if really the owner of the project or the team who is on aching the project there are from reliable place when I come they comment to any person to invest in such Project

There is a common way to check for project legitimacy. Look at who is backing the project, who the team members are, and their past experience and record which can be found in their LinkedIn profile, also look at their social media to ensure they are transparent about their development with their community. These are some common things to look at before making any investment in a project. With all these, a project can still turn into a scam but the chance for that is low.

[slashz9]

I think it's still very difficult to find out directly which projects are scams or not, because there are some good projects but because they are still new and indicated to be scams, I think automatic checking via bots is still not optimal.

[VFalcon]

You can use all these methods that you have listed, but it is also still worth to observe the project, and its stability. I discovered TFS token in this way, and I can say that I am still happy with its high APY.

[Coyster]

There are quite a lot of existing scam projects and so many are being created daily, thus i just take every new project to be a scam until proven otherwise. I don't invest in altcoins that's why i do that, but i know it would be difficult for an altcoin investor to do so because they have to buy coins early and sell them once they have made ROI.

It is what it is, and if someone decides to invest in a lot of altcoins, they must understand the risk and that it is even akin to gambling, you might think a project is legit and be completely wrong, and the reverse could also happen. Every altcoin investor must be ready for things such as these, thats why i buy only Bitcoin.

[wxa7115]

There are quite a lot of existing scam projects and so many are being created daily, thus i just take every new project to be a scam until proven otherwise. I don't invest in altcoins that's why i do that, but i know it would be difficult for an altcoin investor to do so because they have to buy coins early and sell them once they have made ROI.

It is what it is, and if someone decides to invest in a lot of altcoins, they must understand the risk and that it is even akin to gambling, you might think a project is legit and be completely wrong, and the reverse could also happen. Every altcoin investor must be ready for things such as these, thats why i buy only Bitcoin.

I think the same, it may seem to be too negative to think of all new projects on that way, but I cannot really afford to not do it, since the consequences of investing in the wrong coin can be devastating, a thing we see very often on the forum and that will become even more common as the halving gets closer.

So anyone that wants to invest in those coins needs to approach their research in the same way, as someone that is overly optimistic about the prospects of a coin will miss out several red flags that could have allowed them to not invest in a coin that eventually turned into a scam.

[bastian466]

Not all crypto projects are created equal, identifying which crypto token is a scam, and which memecoin is legit. How do you know which projects are safe to step into, and which projects are doomed to fall flat some months from now. The blockchain is awash with promises of quick money and easy rides. But it pays to know if the token you’re holding is part of an elaborate scam to separate you from your hard-earned cash. There are eight straightforward ways of carrying out your due diligence to avoid fraudsters

1. Start from the very basics by
a. Check for social media red flag
b.Check for the token’s address in a Google search

2. Check code is verified on Etherscan

3. Check the Etherscan comments section

4. Check the DappRadar blacklists

5. Check the token details in a token explorer
If you cannot find the token on CoinGecko or DappRadar’s Token Ranking (or a similar coin price tracker), the token is probably a scam. If it is on the token explorer and you see warning notifications like this, proceed with caution

6. Check how many exchanges host the token
If the token is only traded on a couple of decentralized exchanges (DEX), it is almost certainly a scam. Listing on a centralized exchange comes with KYC and additional trust, and the bigger the exchange the better the reputation of a listed token.

7. Check the amount of liquidity in a token’s balance pool
Before you invest in a token, you may want to check general demand and the availability of liquidity. It is very easy to check a token’s liquidity on a platform like Uniswap V2 or other decentralized exchanges.

8. Check third party analysis tools
Smell Test – this does an automated audit of the token. The lower its score out of 100, the more likely the token is a scam.
Reference:- https://dappradar.com/blog/8-ways-to-check-if-its-a-token-scam

The sixth point is what I often use as a benchmark if I want to know whether a coin is good and worth considering. A coin being listed on a large centralized exchange has a great impact on the future of that coin. So it could be said that it deserves to be included in the list of coins that should be held for a long time

[redsun114]

As an individual, even with enough research you may still fall in as victim for scammers. Crypto scammers are just becoming more expert this days. They make things so real that it becomes difficult to identify a scam project from the real one. But my question here is "how do this institution investors make their research?" Do anyone here know any institution investors that one can follow for good projects?

every popular investors like binance labs and so on always announce their investment in their blog, or if you want to know which project are invested heavily by some big investment company try dropstab this platform present you with the data, but for larger insitutional investment company that manage billions they usually just gonna stick with the major coin like bitcoin and ethereum since they have big capital investing in it worth it for them because 30% increase alone already grow their billions dollar capital and will easily give them hundred millions of dollar increase.
its simple math really, the big investment company always stick with relatively low risk asset.

Big investment company and larger institutional investment company sounds the same. And both will prefer less risk assets because like you said, they are investing huge amounts of money and then they are hodling their assets for a very long time. Those who invest in risky assets were maybe a single individual only but they are still richer than the most of us here.

Binance Labs is a kind company that can investment in risky or newer assets but they are different because they are a crypto based company. And their terms are also different. They can be able to hype up a project and they can eject on the ship easily if they think they already reach their desired profit and/or if they think the project is starting to go bad.

[odunybiz]

As an individual, even with enough research you may still fall in as victim for scammers. Crypto scammers are just becoming more expert this days. They make things so real that it becomes difficult to identify a scam project from the real one. But my question here is "how do this institution investors make their research?" Do anyone here know any institution investors that one can follow for good projects?

every popular investors like binance labs and so on always announce their investment in their blog, or if you want to know which project are invested heavily by some big investment company try dropstab this platform present you with the data, but for larger insitutional investment company that manage billions they usually just gonna stick with the major coin like bitcoin and ethereum since they have big capital investing in it worth it for them because 30% increase alone already grow their billions dollar capital and will easily give them hundred millions of dollar increase.
its simple math really, the big investment company always stick with relatively low risk asset.

I don't really understand this. Is this "dropstab" an app or a website. I will like to know how it works. If it a website, kindly send their link to me. I wish to invest some little amount in altcoin and believe this and some other research can guide me through the process.

[Wiwo]

The only way someone can know if a project of altcoins is fake or not is to make a proper research of that particular project and also check the sponsors of the project, what leads us to venture or invest such kind of trade is because of greediness, because greedy investors will like to invest to a place that they will make a surplus profit, and that is one of the reasons they don't bother to know if the project is a scam one or not.

We can't overemphasized on the negative impact of greed on our overall financial decisions, because greed have limits alot from gaining the right information and knowledge about a particular projects, sometimes, due to that greed, any have lose large amount of money and some are still losing, so the place of greed in investment as a negative tool is quite large, because greed have been the reason for the whole crisis and loses that have occured in many projects and this is still continuing to some certain level at some point, when you talk about investment most especially in crypto market, you have to look into those projects that promised alot but give the gambler's near to noting when the reality down on them, this is what haveade many altcoins project to look like a red spot for all of us some time.

So if you want to select the right coin for an investment, you have to first of all check out all the necessary components that make up for the team and how realistic and futuristic Their are in their approach.

[Belarge]

I think it's still very difficult to find out directly which projects are scams or not, because there are some good projects but because they are still new and indicated to be scams, I think automatic checking via bots is still not optimal.

We know what to do what to check if these coins are scam or legit enough. There are more coins to buy in the market, we just have to maintain consistent actions when dealing with the system, I know it's not an easy job but with good performance winning becomes very very important and a priority for everyone of us in the system.

[icalical]

Even with all those step, even when everything is checked, I always assume new altcoin is a scam until proven otherwise. When I choose to invest in an Altcoin especially the new one, I always put in my mind that I am ready to lose the money I have invested, I only invest what I can afford to lose. It doesn't mean that I didn't do research, I still do research but if my research was wrong and my money is lost, my financial condition wouldn't be affected too much, I will still be able to continue my life.

[Xampeuu]

Even with all those step, even when everything is checked, I always assume new altcoin is a scam until proven otherwise. When I choose to invest in an Altcoin especially the new one, I always put in my mind that I am ready to lose the money I have invested, I only invest what I can afford to lose. It doesn't mean that I didn't do research, I still do research but if my research was wrong and my money is lost, my financial condition wouldn't be affected too much, I will still be able to continue my life.

Indeed, using frozen money to invest in new altcoins is important, remembering that sometimes we have carried out in-depth investigations but in the end it doesn't match the analysis, and projects that look good, but don't turn out to be in accordance with the analysis, therefore prepare yourself and don't expect anything more. on new altcoins will help our psychology in investing