How to check if an altcoin is a scam

[fikayo]

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

[1714506067]

1714506067

[1714506067]

1714506067

[1714506067]

1714506067

[Barikui1]

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

All your point you raise here are very valid, but for me what I mostly watched out for is if it's been listed on binance or bybit, if it's not been listed on any of it, I stay off that coin to avoid stories.

[btc78]

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

All your point you raise here are very valid, but for me what I mostly watched out for is if it's been listed on binance or bybit, if it's not been listed on any of it, I stay off that coin to avoid stories.

Does not all project start off with not being listed yet in big exchanges such as binance? If it is not yet listed, does it automatically mean that it is a scam?

It could just be a newly launched project with a potential to increase a lot of altcoins would not even reach being listed in an exchange but i do not think all of them turn out to be scams it is just that some of them do not reach the expectations to be listed in an exchange

[Orpichukwu]

Some altcoins can still pass KYC, have a licence, pass some audit verification, and still be scammed. It's very easy, and it's common during this period to acquire information that could be used to pass such verification. Such verification is common online, and that's why the dark web has been declared a bad place because they sell things like that.
 
We should always do our own research and see how serious those who are offering some tokens to us are and if what they say they are creating is being created and developed as they say they are developing, because most of them are just making fake promises and using that means to raise funds from investors, but at the end they end up using up the money for their own selfish interests.

[jrrsparkles]

Does not all project start off with not being listed yet in big exchanges such as binance? If it is not yet listed, does it automatically mean that it is a scam?

It could just be a newly launched project with a potential to increase a lot of altcoins would not even reach being listed in an exchange but i do not think all of them turn out to be scams it is just that some of them do not reach the expectations to be listed in an exchange

A project to be listed on an exchange like Binance itself big achievement and 99% of the time the projects won't reach that height but it doesn't make them a scam project which I agree. Also, the points mentioned in OP are good too and let's say it can help us to avoid 60-70% of the scam projects if we follow all those things but a project that has existed successfully here for years can even plan for an existing scam and that kind of scams can never be predicted.

[Mate2237]

Some altcoins can still pass KYC, have a licence, pass some audit verification, and still be scammed. It's very easy, and it's common during this period to acquire information that could be used to pass such verification. Such verification is common online, and that's why the dark web has been declared a bad place because they sell things like that.
 
We should always do our own research and see how serious those who are offering some tokens to us are and if what they say they are creating is being created and developed as they say they are developing, because most of them are just making fake promises and using that means to raise funds from investors, but at the end they end up using up the money for their own selfish interests.

Exactly, scammers can do everything possible to scam people, they do all that to make people to believe that everything is okay with the project and they can even work or be active for some years to do business with customers with a legal and legit ways but when they have accumulated enough amount which have been looking for them they would start the maintenance of the site and from the maintenance of the site everything would went off and your funds would get lost.

And really this guys have different strategies to scam people though what the op said is good but whenever investing in altcoins make a good research about the project before investing.

[GeorgeJohn]

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.

[wheelz1200]

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

All your point you raise here are very valid, but for me what I mostly watched out for is if it's been listed on binance or bybit, if it's not been listed on any of it, I stay off that coin to avoid stories.

Waiting to see if it's listed by one of those 2 exchanges means literally nothing in terms of being legit or a scam.  A project and look legit in any fashion but underneath it they are just waiting to scam everyone.  I'd say looking at exchange listing to verify if a project is legit is probably one of the worstrways to determine that.

[albon]

Waiting to see if it's listed by one of those 2 exchanges means literally nothing in terms of being legit or a scam.  A project and look legit in any fashion but underneath it they are just waiting to scam everyone.  I'd say looking at exchange listing to verify if a project is legit is probably one of the worstrways to determine that.

We always find that most scam projects that invite people to invest in them mention listing their currency on T1 or T2 CEX platforms as part of their promises and roadmap goals. In the end, you find that they did not fulfill their promises and falsely promoted the goal of listing to attract investors who would invest huge sums in the project in the hope of listing the token on Binance and other top CEX and then reaping huge profits. However, suppose the coin has already been listed on market-leading T1 exchanges. In that case, it is unlikely that the coin is a scam because listing it on such popular centralized platforms requires strict conditions and exorbitant fees. Listing a coin on DEX platforms is different from listing it on T1 or T2 CEX, and this is perhaps one of the signs that can be relied upon while doing researching to check whether the token is a scam or not. However, listing the currency does not guarantee the project's success, as it could be delisted later if there are issues or violations.

[TimeTeller]

Waiting to see if it's listed by one of those 2 exchanges means literally nothing in terms of being legit or a scam.  A project and look legit in any fashion but underneath it they are just waiting to scam everyone.  I'd say looking at exchange listing to verify if a project is legit is probably one of the worstrways to determine that.

We always find that most scam projects that invite people to invest in them mention listing their currency on T1 or T2 CEX platforms as part of their promises and roadmap goals. In the end, you find that they did not fulfill their promises and falsely promoted the goal of listing to attract investors who would invest huge sums in the project in the hope of listing the token on Binance and other top CEX and then reaping huge profits. However, suppose the coin has already been listed on market-leading T1 exchanges. In that case, it is unlikely that the coin is a scam because listing it on such popular centralized platforms requires strict conditions and exorbitant fees. Listing a coin on DEX platforms is different from listing it on T1 or T2 CEX, and this is perhaps one of the signs that can be relied upon while searching to check whether the token is a scam or not. However, listing the currency does not guarantee the project's success, as it could be delisted later if there are issues or violations.

Usually, it is already too late before you realized that the project is a scam.
Just look at what happened to Terra Luna and FTX, they have been known to the community as successful ones.
Before they pulled the plug of being a crappy project, wherein a lot of investors lost huge amount of money.
If you are not very sure with the alt you are holding, then sell it while you are in profits.
Because if you wait too long, you may lose a lot because most alts decline its value thru time particularly those without valid reason of existence.

[sheenshane]

I'd say looking at exchange listing to verify if a project is legit is probably one of the worstrways to determine that.

Exactly and I tend to agree with this, even though listed on a big exchange the chances of getting scammed are still there.

IMO, it matters on transparency.
Everything should be transparent, from the team, and community engagement, and the last is you can verify on Github because it is an open-source project.  Open-source projects allow the community to review the code for transparency and security.

Another is if it is listed on the market.
Beware the market manipulation, we should understand how tokens are distributed and whether measures are in place to prevent market manipulation.

[Publictalk792]

Usually, it is already too late before you realized that the project is a scam.
Just look at what happened to Terra Luna and FTX, they have been known to the community as successful ones.
Before they pulled the plug of being a crappy project, wherein a lot of investors lost huge amount of money.
If you are not very sure with the alt you are holding, then sell it while you are in profits.
Because if you wait too long, you may lose a lot because most alts decline its value thru time particularly those without valid reason of existence.

This is the Crypto Market. And I think only one coin in which we can believe that is only Bitcoin because it is totally decentralized. Otherwise if you see others so they have the owners and they can manipulate their coins at anytime..
Like you have mentioned the two big Projects which crashed and scam people and grab much money from them. Luna and FTX both were the good projects but how they crashed no one expecting that.
So we can't say anything about any project because this is the crypto market.

[deathcode]

simply, if you get a free token that you didn't have before and suddenly it is in your wallet. it is one of the simplest first aspects and can be realized by everyone.
just check the transaction, if it looks strange, and if it has been traded on the dex it usually gives a very high price. and users who acquire such tokens are usually interested in selling them. and if that happens, maybe your other assets in your wallet will be lost in a short time.

[Strongkored]

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.

This can be a valid point but not a guarantee because over time the token eventually ends up being a scam, you remember FTX which even has its own exchange with quite large volumes and also how UST is also a token that harms many parties with its scandals, even the big exchanges themselves could end up being a scam. If you want to invest in tokens, you also have to be prepared for all possibilities, that's why keeping tokens or altcoins for too long will also increase our chances of getting scammed, even though there are altcoins that last a long time and continue to provide profits to their investors, but that is very rare.

[Fundamentals Of]

If the goal is to check if an altcoin is a scam, you better just generalize. That would be a safer approach. After all, almost all altcoins are scam. They only differ in degrees. There are some that are not scam but these coins are not serious enough about their project or development that the prices of their coins or tokens are rarely increasing.

When it comes to altcoins, I can only recommend whatever is in the top. If you base your assessment on the things in your list, there is not enough screening and you are still at risk of ending with a scam altcoin.

[Justbillywitt]

Some altcoins can still pass KYC, have a licence, pass some audit verification, and still be scammed. It's very easy, and it's common during this period to acquire information that could be used to pass such verification. Such verification is common online, and that's why the dark web has been declared a bad place because they sell things like that.
 
We should always do our own research and see how serious those who are offering some tokens to us are and if what they say they are creating is being created and developed as they say they are developing, because most of them are just making fake promises and using that means to raise funds from investors, but at the end they end up using up the money for their own selfish interests.

It is also important to know the some of the project team members, their history is very important. Have they been part of any project that has succeeded in the past? Check out the team members social media handles on LinkedIn, X or another social media handles. I don't just invest in a project because there is a hype on it as most people are paid to hype a particular project.

[KingsDen]

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

Maybe the best thing to do is to treat all altcoins as scam untill they prove otherwise. With that consciousness, you will become more careful and make diligent research before investment.

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.

This is correct. I'm decentralized exchanges many things happen and that is why I do not encourage newbies to use DEXs until they are aware of what they are doing and be strong to take the consequences of their decisions. In Dex people can create counterfeit coins and lure unaware investors to buy what does not exist.

7. Check the amount of liquidity in a token’s balance pool
Before you invest in a token...

Can't this be manipulated?

[redwine49]

There are many method to check an altcoin is probably scam.
I think your method is good to follow

All your point you raise here are very valid, but for me what I mostly watched out for is if it's been listed on binance or bybit, if it's not been listed on any of it, I stay off that coin to avoid stories.

Your simple method is good but usually the coin/token price will increase too much when they got listed in binance.
And i have some token which got listed by binance but it's gone now

[Best-mary]

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

All your point you raise here are very valid, but for me what I mostly watched out for is if it's been listed on binance or bybit, if it's not been listed on any of it, I stay off that coin to avoid stories.

That's what I do too. Is good to see someone following the same tactics. What I use is Bitget and Binance.

As we all know that Binance most times they seem to list tokens late. Maybe when it has already done 10-50x they get to list it. But for the other exchange, they usually list token most often and most of the listed ones are usually good tokens. Some of which I have seen do well few days after it got listed

[Text]

Identifying legit projects from scams can be a real head-scratcher. When I research a certain project, I focus on the problem it solves. Does the project address a real problem with a viable solution? Or is it all hype and empty promises? I also dig into the team, are they experienced, and do they have a proven track record? Anonymous devs are always a cause for concern. I also join their communities to stay up to date, engaged communities are a good sign.
You should be aware of guaranteed returns, if it sounds too good to be true, it probably is. Steers clear of anyone promising moon-shot gains overnight.
DYOR is your mantra. Use your critical thinking, trust your gut, and don't be afraid to walk away if something feels fishy.