Topic: How can I know Scam coins and token Through Whitepaper - page 2. (Read 444 times)

Is it only pump tho? Been 5 years and it still exists, people use it for cheap transfers. I dunno other adoption, but for cheap transfers, it's one of best at the moment.

It is not possible to judge a project as a scam or not by the whitepaper, we need a lot of factors that come together. It can be said that today's scammers are getting more and more sophisticated and wise in creating a scam project and it is getting harder and harder to distinguish. Even an experienced person in the market sometimes makes mistakes when evaluating a new project, the best way to avoid such scams, I recommend you as a newbie focus on the top coins, invest the old coins. They may not be as profitable as new projects, but they are safer for you.

In my opinion, I don’t think whitepaper is what we really based if the project’s token is scam or not. Even scam projects can design a well-constructed beautiful whitepaper by just outsourcing it to various service providers or so.

“Who’s behind it” is what we base if the project is scam or not. If the team is legit and has verified LinkedIn accounts but the token is dumping, I am not saying they are a scam but just being a failure and not sustainable in maintaining their floor price.

Most of the scammers are anonymous and they can rug pull anytime without warning. This is why I don’t really trust ANON projects because we do not know who is really behind the project.

Whitepaper will not be able to help you determine whether this project is fraudulent or not. After all, no fraudster will write to Whitepaper that this project is being created for the sole purpose of deceiving investors by appropriating their money. Although if you see that the Whitepaper is copied from another project, then this will indicate that you should refrain from investing.

Success is not defined by scale of the pump, it is defined by adoption and Tron has failed already when it comes to adoption. The thing about all the "top" altcoins is that they can only get pumped better than the rest of them but they are just as useless. The reason for better pumps are also due to having better pumping teams!

The whitepaper only tells you so much. But, at the very least, whitepapers suggest a lot.

The problem the project is supposed to address is indicated in the whitepaper. How the project intends to address it is also in the whitepaper. The roadmap is in the whitepaper as well. The tokenomics is also in there, so you will also get a rough idea of whether a project is sustainable or not. Further details such as the token supply, distribution, and so on are also in the whitepaper. And unlike Bitcoin's whitepaper, crypto whitepapers these days also include the development team, their credentials, and other information.

So more or less, you can gauge whether a project is likely to succeed or not based on the whitepaper. Well, that also depends on your own standard. But, as opposed to other opinions here, I guess whitepapers are a good material to start with in order to somehow judge the potential of a project.

However, of course, it's one thing to talk the talk and quite another to walk the talk. So a promising whitepaper doesn't really guarantee success. And because it's altcoin projects that we're mainly talking here, always proceed with caution. A good whitepaper, smooth project development and growth, huge rise in token's price, big partnerships, and so on do not mean the project isn't a scam. It isn't until it is.

Remember, Terra was a scam and Do Kwon is a scammer.

Projects can pay someone professional and wp might look cool but there would be no substance in project itself, and then there is tron whose wp was plagiarize yet it's relatively successful.

It's now getting more difficult to identify a scam coin from a legit one, whitepaper can't be used to identify a scam coin from the real coin, let's just be honest I don't think their is anything that can be used to identify scam coin from real once, scammers are going extral miles just to make all their plans look real, if you see a scam project you might even think it's the real one because they way they will plan everything, you will never believe it's a scam coin, that's why the best thing you should do is just invest in bitcoin and have rest of mind, you won't be disturbed if it's a scam coin or not, just invest in bitcoin and hold, you will never regret you invested in bitcoin later in the future.

Check the Github repo if it has a little to no activity. Article spinner exists, so the written stuffs in the WP might give little to no red flags. I would start as well in the LinkedIn profile of the devs and look up where they previously worked at and check the site of whatever company they were previously at and confirm if they really worked there before.
There are way more methods to look out for red flags other than the WP.

Having Whitepaper is not a sure sign that a legitimate project is behind it. There are many text spin applications today, anyone can write a wp full of some phrases or just do a rewrite from an already existing project.
only reading WP is not enough to make a decision about a possible investment in a coin, but WP plus additional research can give a final answer. if after all, you are still not sure, then it is a sign that it is better to give up that coin.

Even the most beautiful whitepaper does not guarantee that the project will eventually be successful and not fraudulent. You can hire a good specialist who will write a competent document, but in the end, you can still not be sure of success. In addition, scammers do not hesitate to copy or simply create a white paper of two or three pages that do not represent anything.
So don't rely on it. If you are new, choose tokens that are already trusted by the community, or take your time and watch the development of the project and the interest of others in it.

There's no way to differentiate scam coins and tokens through whitepaper since any developers will write a good thing and try to create an excellent project that will convince investors to buy their coins or tokens.

I think 99% coins and tokens that still exist until now is scam, including BNB This coin has no use case for real life, it's only can be used to get discount if you're using Binance exchange. So this mean most of the holders are Binance users and if the exchange collapse, the coin will follow the same situation too.

A beginner can't do that, because you need a deep knowledge of cryptography, distributed systems, blockchain, and lots of other fields where the projects are applied - like supply chains, finance, filesharing networks and so on. If you don't understand these things, then any whitepaper is just a bunch of cool-sounding words to you, and your mind will focus on phrases like "revolutionary solution", "banking 4.0", "new paradigm" and so on.

But like others here have noted, scams can be very elaborate, they can present an idea that sounds good to anybody who isn't a high-tier crypto expert (and not the safe-proclaimed gurus, but rather somebody like a Core developer). That's how scams like Terra Luna get so much traction - few people understand what is wrong with them, until it's too late.

If the whitepaper is poorly written or dont have enough design or even given effort to do so. Most scam coins doesnt give time to make whitepaper ending up plagiarize to original projects and even lazy enough to completely edit it. You can gaze some errors on names terms or even such tokenomics details.

Also you dont need to rely on whitepaper cause it can easily be feel by their presence once you see their website, social hub and team.

Well scammers put a little effort now and wise, basically --they created it to look good and to be true.
There is no way to know not unless they will be listed on the top exchange.
A good project is not only determined by a white paper but also by the team and the background check of them, the project goals, and utility, transparency on the team and the last one is the DexTools ^[1]--this is a platform that can able to view token information. From the ETH network to the BSC network by searching contract addresses.
In short, don't rely on the Whitepaper.
^{[1] https://www.dextools.io/app/}

Most times scam project tend to use Plagarised whitepaper so you could check if there are traces of Plagarism in the whitepaper of the project.
But that doesn't mean that a project is legit if it doesn't use Plagarised content in their whitepaper some still use unique whitepaper and still turn out to be a scam. Aside from the whitepaper you could also check for several other red flags like; if the team are real or not, if they truly have what it takes to actually execute their roadmap plans etc.

You could also check out the following threads for guidance:

• [Guide] How to detect fake token and spot scammers.
• [GUIDES] on Bitcointalk. Index thread (until there is a dedicated subforum?)
• 🌍[Guide] Prevent scam!!! Some useful tools for find scam / fake ICO team 🌍

Typically, the creators of scam projects put little to no effort into making their whitepaper unique or technically interesting. Those whitepapers are written in vague language using a lot of senseless buzzwords and marketing tricks with tons of promises to make you rich. Of course, naive investors may fall for this because being wealthy is their goal after all, and these whitepapers make investors focus on the wrong things, distracting them from the fact that a given project may have no working product or even a well-structured website. Moreover, oftentimes these whitepapers contain blatant plagiarism: they steal ideas from other, more successful projects and pretend to be original ideas. Copypasting is the easiest way to start your project because that requires minimum effort and time, and given that scammers want your money as soon as possible for zero cost, a plagiarized project is a clear indicator of it being a fraudulent one. So, check a whitepaper for plagiarism before starting to interact with the project, and if you find something unusual or suspicious, run away from it immediately.

You can't because you are not supposed to. Whitepapers are basically the abstract idea about the project and what makes the project good or bad or scam is how that idea is implemented. For example you can't really figure out what bitcoin potential is by reading the paper since that will only introduce the general idea about what bitcoin is trying to achieve. Not to mention that sometimes the idea is very good but the implementation is terrible/scammy like ethereum where the idea of a "decentralized smart contract platform" is good but they implemented a centralized platform for scammers with lots of protocol flaws and a mutable blockchain.

You mostly don't do it through the whitepaper(though you can have a rough idea on how much BS they're spewing), but by doing background checks of the people involved(and if the claims of who the team consists of are true or not). You still can't say for sure though, because not because the team consists of real people, doesn't automatically mean it's not a scam. Apparently some people just don't care about their reputation.

tl;dr there's a reason why "investing" in altcoins is broadly not recommended.

If every coin has a Whitepaper, that means both the scam coins and the legit coins has a Whitepaper. Then how can a beginner differentiate a scam coin and a legit coin with the Whitepaper?