How to check if an altcoin is a scam

Obim34

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Quote from: mvdheuvel1983 on February 28, 2024, 01:41:49 PM

Quote from: Obim34 on February 27, 2024, 08:19:30 PM

Quote from: GeorgeJohn on February 27, 2024, 06:08:21 PM

It's like I have emphasized on this so many times so I know quite to wear that you must make a research in any new project before you can be able to understand or no if the project of altcoin is a scam Project or not a scam Project that is why it is necessary for every cryptocurrency investors to make a proper research to know available coin and the non-valuable coin so that when they invest on it they will expect to make a profit but when you have not make a proper research and you invest in a coin that is every tendency that that Project might be a scam one because you have not go deep to make a possible research concerning the project before investment. To know a scam Project can be only be possible when you have cross check the furtherance of the project very well.

Most at times, ~~merely looking at the project one can tell the project is actually scam like~~ and it's quite enough reason to avoid them. First go through their social media platforms, read and understand every little detail sorrounding the project using their white paper and as well check out the hypes and trend if anything suspicious before probably investing one's money.

You don't know if a project is a scam by merely looking at it what does your look have to do about scam projects will you discover a scam project that has been well programmed by profession scammers by looking at it without making proper investigation? Apart from using their white paper to make more findings a good research and looking at their social media handles can also help to find out the history of the project and to monitor the news and information they pass across their social media platforms will give you more insight if you should invest or run as they are scammers unseen.

I maybe wrong by using the word ~~merely looking at the project one can tell the project is actually scam like~~.
Most at times I don't have to first go through the project white paper to read most trash, I just go to their community handles and do a close observations, it often turns out to be scam at the very end.

mvdheuvel1983

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Activity: 1022

Merit: 368

Quote from: Obim34 on February 27, 2024, 08:19:30 PM

Quote from: GeorgeJohn on February 27, 2024, 06:08:21 PM

It's like I have emphasized on this so many times so I know quite to wear that you must make a research in any new project before you can be able to understand or no if the project of altcoin is a scam Project or not a scam Project that is why it is necessary for every cryptocurrency investors to make a proper research to know available coin and the non-valuable coin so that when they invest on it they will expect to make a profit but when you have not make a proper research and you invest in a coin that is every tendency that that Project might be a scam one because you have not go deep to make a possible research concerning the project before investment. To know a scam Project can be only be possible when you have cross check the furtherance of the project very well.

Most at times, merely looking at the project one can tell the project is actually scam like and it's quite enough reason to avoid them. First go through their social media platforms, read and understand every little detail sorrounding the project using their white paper and as well check out the hypes and trend if anything suspicious before probably investing one's money.

You don't know if a project is a scam by merely looking at it what does your look have to do about scam projects will you discover a scam project that has been well programmed by profession scammers by looking at it without making proper investigation? Apart from using their white paper to make more findings a good research and looking at their social media handles can also help to find out the history of the project and to monitor the news and information they pass across their social media platforms will give you more insight if you should invest or run as they are scammers unseen.

Obim34

sr. member

Activity: 224

Merit: 195

Quote from: GeorgeJohn on February 27, 2024, 06:08:21 PM

It's like I have emphasized on this so many times so I know quite to wear that you must make a research in any new project before you can be able to understand or no if the project of altcoin is a scam Project or not a scam Project that is why it is necessary for every cryptocurrency investors to make a proper research to know available coin and the non-valuable coin so that when they invest on it they will expect to make a profit but when you have not make a proper research and you invest in a coin that is every tendency that that Project might be a scam one because you have not go deep to make a possible research concerning the project before investment. To know a scam Project can be only be possible when you have cross check the furtherance of the project very well.

Most at times, merely looking at the project one can tell the project is actually scam like and it's quite enough reason to avoid them. First go through their social media platforms, read and understand every little detail sorrounding the project using their white paper and as well check out the hypes and trend if anything suspicious before probably investing one's money.

werghb4562

newbie

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Quote from: fikayo on January 01, 2024, 10:52:17 AM

Check code is verified on Etherscan

ROFL. Use eth to check if an altcoin is a scam when eth itself is a gigantic scam. If an altcoin has a huge majority of the supply premine like eth then it is 100% a scam.

xeqoRameshAxueamExaqana

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Quote from: fikayo on January 01, 2024, 10:52:17 AM

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

not all tokens or coins I call tokens because if a coin is one that has its own network, for example, bitcoin and ETH itself. so if you check the scam coin or not only through etherscan, obviously you can't. because if the coin does not use the ETH network, it cannot be checked on etherscan.

Moreno233

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Quote from: Orpichukwu on January 01, 2024, 02:45:55 PM

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.

You are very correct. There is no length the founders of scam project cannot go to make their project look legit until they achieve their aim which is scam people of their resources. There have even been several cases of altcoins that that did KYC, pass audits by many reputable auditors, raised big amount of money and even did solid marketing yet they left their investors crying at the end. I even learnt that some of the KYC data they collect are sold in dark web, they scam people of their funds and still sell their data. Like you said, it is always best to do our own research about projects to invest in to avoid regretting anything. We should also be mindful of the level of information we release so we are protected from harm.

GeorgeJohn

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Bitcoin is achievement

It's like I have emphasized on this so many times so I know quite to wear that you must make a research in any new project before you can be able to understand or no if the project of altcoin is a scam Project or not a scam Project that is why it is necessary for every cryptocurrency investors to make a proper research to know available coin and the non-valuable coin so that when they invest on it they will expect to make a profit but when you have not make a proper research and you invest in a coin that is every tendency that that Project might be a scam one because you have not go deep to make a possible research concerning the project before investment. To know a scam Project can be only be possible when you have cross check the furtherance of the project very well.

Dailyscript

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Activity: 196

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Just pray that you don't get unfortunate and fall for scam altcoins. Those responsible for these crypto scams are now so smart that they would spend money to make their platform look so real and even list it on one of the tier 1 exchanges just to win the trust of investors. The money that would be scammed would be times ten of what they have put in to achieve the goal. Which is a brilliant idea. In my opinion, the best way to avoid scam projects is to invest in coins that are only listed on Binance and Kucoin. They are more trusted because they have gone through a deep investigation of the project on Binance, and they know how much it costs to list your projects on Binance; it takes only legit projects to get listed there.

Troytech

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You just listed a lot of normal stuffs, how do we know those social media red flags, if you really know what you are saying then I guess you would have given more details.

The only real thign on your list is to check if they have been listed out on any big exchange, big exchanges mostly filter this scam projects out but even thonsome of them with bad managers that are scammers still find their way in, not all tokens listed on binanve are good projects and worth to invest your money on.

I would have said for you to read whitepaper and check out for their team members, but scammers are getting innovative about this they now hire professionals to write their whitepapers and its very hard to find our faults in it, but checking out for team members is still very valid.

Tmoonz

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Quote from: fikayo on January 01, 2024, 10:52:17 AM

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

Most of this scammers has a better of making things look real they read the mind of investors and give them what they expecting like trends in other to draw publicity and widespread adoption, their is no guarantee that any project that meets up the characteristics listed above can not a scam merely.

dlightag

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Thank you for the update of checking process not to fall a victim of scam project, but I still see alt-coins as a game of investment in which after all the checking, Coin that we dump, we still dumped one day, as far as Luna, FTX Coin and some other alt-coins can break people heart and up to date have not recovered from dip. I still prefer Bitcoin as the best, reliable Coin and stress free investment for a long time holding.

Essential10

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OP the points you raise are correct, but out of the many alt coins it's really hard to tell which coin will actually be the most comfortable to invest in. New coins are born in the market constantly, I think it is not possible for a person to analyze thousands of coins and invest. I have noticed that in most cases new coins start pumping a lot in the initial stage, many people are attracted to invest in new coins without proper observation, judgment analysis. Many times the new coins entering the market seem good after researching them but later the coins turn out to be scams. However I always prefer to invest in the top coins in the market to avoid scams and risky trends.

arjunmujay

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Quote from: cryptoWODL on February 26, 2024, 02:36:43 AM

Quote from: Pedrination on February 25, 2024, 10:35:20 PM

To tell if an altcoin project is legit, you've got to do your homework and check who's backing it. But why do we jump into these trades? Well, it's often because of greed. Greedy investors just want big profits and don't bother to check if the project's legit or not.

If you want to invest in alt coins, you should analyze its market trends in detail. Many of us have a tendency to invest in a new coin when we see it listed in the market. Before investing in these coins they should observe well how the project team is performing or working.

Among the most scammed alt coins are new coins that have recently been listed on the market. The owners of these projects earn enough money after the token is listed but those who invest in these coins end up money loss.

First, of course, understand in detail what altcoin you want to choose.
Even though it's an old altcoin, if you don't understand the ins and outs of the coin, it will certainly confuse you in making investment decisions.
Don't just because of the hype then you decide to invest with a lot of money. At least you know clearly what and where the altcoin is heading.

Reatim

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Quote from: fikayo on January 01, 2024, 10:52:17 AM

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

This seems for me is more on advertising/promoting their site but yeah still this is helpful so I am gonna save this for checking.
thanks for the tips and thanks for sharing that link so I can save it easily now.

Quote from: Pedrination on February 25, 2024, 10:35:20 PM

To tell if an altcoin project is legit, you've got to do your homework and check who's backing it. But why do we jump into these trades? Well, it's often because of greed. Greedy investors just want big profits and don't bother to check if the project's legit or not.

it is given above mate, almost complete advise for everyone who don't wanna get scammed.

cryptoWODL

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Activity: 224

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Quote from: Pedrination on February 25, 2024, 10:35:20 PM

To tell if an altcoin project is legit, you've got to do your homework and check who's backing it. But why do we jump into these trades? Well, it's often because of greed. Greedy investors just want big profits and don't bother to check if the project's legit or not.

If you want to invest in alt coins, you should analyze its market trends in detail. Many of us have a tendency to invest in a new coin when we see it listed in the market. Before investing in these coins they should observe well how the project team is performing or working.

Among the most scammed alt coins are new coins that have recently been listed on the market. The owners of these projects earn enough money after the token is listed but those who invest in these coins end up money loss.

God bless u

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Quote from: wheelz1200 on February 25, 2024, 07:32:35 PM

These are all great tips but in the end a well disguised scam will get through all of these checks. Always good to look deeper into some of these that you pointed out it can at least detect the lazier scams. I'm more worried about the long game scams that are disguised as good functioning projects. Those types usually bail with tons of money vs the lazy ones that don't even pass the initial sniff test.

Yes you're right altcoins needs a very deep research of the market and trends. It's more suitable to invest after some of the time has passed because then you get some information and graphs to get an eye on the ups and downs of the project

moreover you will get to know how the team of the project is performing and how much they are serious about their project because the use case of the project in future is very for its growth no project can survive without having some meaningful and technical aspects.

deathcode

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Quote from: Xxmodded on February 26, 2024, 12:50:23 AM

All your points is trues how to check with potential one altcoin is scam, its most important talk to the beginner when start investing in altcoin exactly many useful points describing about altcoin has chance to be scam. I like with several your points and seems based on my experienced when facing scam altcoin, there are altcoin listed only at decentralized exchanges (DEX) and developer easily removing liquidity with their coins and the investors can't sell the coins until becoming scam.
I think if developer braveness bring their coins not only listing but in decentralized exchanges (DEX) but also CEX exchange are available for trading its less chance to be scam except delisting by the exchange its self.

If a scam coin gets listed on CEX, that means the process may have convinced many investors to join in the project development. and the victims may be even more numerous if that happens.
The case that we often encounter today is as you said, developers take away their coins with lots of profits, and investors will only become victims and complain about the losses they get.
It is highly recommended for beginners in crypto investment to join new projects. some coins are already quite large in the market and they can practice how to invest well with coins that already have a large market.

Xxmodded

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All your points is trues how to check with potential one altcoin is scam, its most important talk to the beginner when start investing in altcoin exactly many useful points describing about altcoin has chance to be scam. I like with several your points and seems based on my experienced when facing scam altcoin, there are altcoin listed only at decentralized exchanges (DEX) and developer easily removing liquidity with their coins and the investors can't sell the coins until becoming scam.
I think if developer braveness bring their coins not only listing but in decentralized exchanges (DEX) but also CEX exchange are available for trading its less chance to be scam except delisting by the exchange its self.

Pedrination

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To tell if an altcoin project is legit, you've got to do your homework and check who's backing it. But why do we jump into these trades? Well, it's often because of greed. Greedy investors just want big profits and don't bother to check if the project's legit or not.

JeffBrad12

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Quote from: VanKushFamily.com on February 25, 2024, 03:28:42 PM

Talk to the Community. That's the Best way. Or Learn Everything about it, and Take it over Yourself like the Telegram TON Coin and Chain.

depends on which community we are talking about if we are talking about the community behind the scammy projects its either filled with people who have no idea, or people who are working together
behind the scene with the project owner.
also it reminds me certain rugpull that just happened not too long ago in certain L2, the scam project raised few hundred ETH then suddenly vanished into thin air, that is the thing with investing in a new project.
you're basically just betting your money away and see whether this random stranger gonna held true to their word or not and thats most certainly a ridiculous way to bet your money because we are not talking about odd, we are talking about whether certain person behind the project actually can be trusted because we all know some random people over the internet definitely 90% of them can't be trusted.

Topic: How to check if an altcoin is a scam (Read 887 times)