Topic: How to smell fraud in projects and detect Ponzi schemes from far as a Newbie - page 2. (Read 572 times)

never believe words like this "our project has high ROI and minimal risk" or "our project is the next bitcoin bla bla bla, invest your money immediately, don't miss it"

scammers in crypto take advantage of the psychology of newbies who are hungry for profits from crypto while knowledge and experience have not yet supported these newbies to invest, so what is the first step that novices should take to avoid scam projects, of course many ask more first to the seniors and ask them to share the experiences they have had while being investors in a cryptocurrency project.

often asking seniors about things unknown - avoiding the trap of high ROI - the legality of the project and also the professionalism of the team behind the project are steps that must be taken by beginners before making investment decisions in crypto projects.

Strangely people will see all the red flags an indication of a Ponzi scheme but will still choose to try it out. Greed is very uncontrollable to some people and there is also the believe that if you are one of the early investors in a Ponzi scheme, you will be a part of the first benefactors before the Ponzi fails. Ponzi schemes will always repackage themselves and always come back with enticing offers that will lure the greedy.
Ponzi will always have victims, It will always have people who will fall for it.

Ponzi schemes and scams are everywhere, and they will continue to exist but they can be avoided, you just need to be extra careful and sometimes look for the red flags, you will get one or two pieces of evidence to avoid them if you are not greedy, remember a safe investment is a safe mental health and safe future.

Ponzi schemes and scams are everywhere and they will continue to exist but they can be avoided, you just need to be extra careful and sometimes look for the red flags, you will get one or two pieces of evidence to avoid them if you are not greedy, remember a safe investment is a safe mental health and safe future.

High APR and APY is surely something which makes it a complete scam and fraud, I have seen that's the only thing which attracts users to buy shitcoin and then stake it for like months.
And within days, the developers are on the run with their money and the funds are still locked in a stake. This is a common trap and the most used way to scam people with tokens in Crypto.

The scammers are always developing their scamming process to an advanced level in order to convince newbies and the public to fall into their trap. That is why they go around and copy some Ponzi schemes that succeeded and change some things that will make them look real and encourage people to join and invest with them.

Ponzi schemes and scams are everywhere and they will continue to exist but they can be avoided, you just need to be extra careful and sometimes look for the red flags, you will get one or two pieces of evidence to avoid them if you are not greedy, remember a safe investment is a safe mental health and safe future.

Sometime we already know its a ponzi but still we are going for it. Why? In crypto being risky is a very common ground especially for shit worth looking projects. All the info you said is correct and thats what everyone should be focusing. But if the project has certain traction, some people even intelligent one forgot the purpose of the project and as long as they see money printing about this one they join it. Regardless if theres a cross check on the points you provided.

If there is anything simple that I have learned in crypto, is nothing but to be less greedy, this is what some people lack being a crypto person and as long as there is money in a particular place, scams will never cease to exist that particular place, they will keep coming in different forms in different trends and no matter how expert you have been around here, you will come across them. However, it's not everyone that has this sense of smell to convert it easily as a red flag, these scams come and go in every trend but there is always a catch in the way they present them if you carefully take your time to observe, criminals always live evidence behind and that is what I'm going to share with you.

A scam is not limited in any form in crypto, they could be criminals that manipulate people into having their privacy and securities, scammers that generally steal a wallet or drain the wallet of people but the scams I want to share are limited to physical appearance, things you can look from far and detect that you are in the wrong place, some of this red flags are easily detectable but as I have said, greed is what makes many of us into places we are not to be which result to regret of being in crypto in the first place but I will share you some of the ones I have learned so far. Come with me as I share:

High APR and APY: These two are used as a form of reward for people that love staking their coins and tokens, and in return, they are given interest for some time, the two are different, APY stands for Annual percentage rate and APY stand for Annual percentage yield and the difference is that APR is compounded and APR are not compounded, so technically APR will be slightly higher but not much gap. The lesson is not about the difference but the percentage these projects gives which are ridiculous percentage as high as 100% to 1000% in other to make people stake their tokens to reduce inflation but they are scams mechanism.
When you lock your coins in any platform that promises high yield is always a trap for people to lock their coins and when the market is going down, you wouldn't be able to sell and whatever the APR they gave you wouldn't be able to compensate you for the loss, they are either scams to prevent you from selling or to take away your coins, no real projects offer high yield, you should be cautious of this when it exceeds 3-5%

Team: There is no good feeling like knowing the people around what you have in your portfolio, it may not be a guarantee of the success of what you buy to hold but knowing that people that are working behind what you invested in reduce the risk of scams and teams running and abandon what you have wasted money on. There are times projects go anonymous for projects like DEFI that are high risk as they always new and test, they do that for disclaimer purposes in case it failed which is the intention is clear. However, some projects hide their identity by using fake ID are always scams because that's impersonation to give an impression of what they are not, this is one of the red flag people should detect during personal research, nobody will tell you this but you alone and the signs are there when they use fake ID from google and Stock images for impersonation.

Plagiarized and Lazy structure of the contents and website: A man that doesn't have time to think will lack tangible art to present and Ponzi schemes don't lack this from their master plan, they lack idea, they also lack reasonable solutions to problems, the only thing they know is to think out of the box to plagiarize another work and promise to do better in the original work so that people will think they are the real deal breaker while doing this, they don't do it from scratch, they present the old idea and change the name and places that will look similar to their scams. Oftentimes, you could see this from their websites, their documentation and whitepapers are copies of another idea and these are the signs to always check in any projects.

Under pressure to rush things: Real project will do their work at their convenience without procrastination, they don't give in to pressure, they take time to build and when they deliver or make announcements, they make sure they meet expectations and don't disappoint, they always work with the road map and keep people along the timeline with the mission they promise from the beginning but Ponzi and scams are easy to detect right from when they do crowdfunding and public sale, always in rush to make money so they can run away with people money without valuable result for the people, sometimes in public sale when they don't hit their scam target, they keep increasing the time over and over to continue their fraud until someone expose them of their scam.

Unregistered company and short time website duration: Another red flag to look out for is when a company that claims to have a project is not registered, a real company will be registered and fully recognized with a registration number to prove they are real and not fake individuals to avoid any doubt that will raise any form of suspicion. When they have their website registered in under a month and will expire in the following year is another thing to avoid, most of them do this to clean their tracks after scamming people with their Ponzi schemes.

Ponzi schemes and scams are everywhere and they will continue to exist but they can be avoided, you just need to be extra careful and sometimes look for the red flags, you will get one or two pieces of evidence to avoid them if you are not greedy, remember a safe investment is a safe mental health and safe future.

If there is anything simple that I have learned in crypto, is nothing but to be less greedy, this is what some people lack being a crypto person and as long as there is money in a particular place, scams will never cease to exist that particular place, they will keep coming in different forms in different trends and no matter how expert you have been around here, you will come across them. However, it's not everyone that has this sense of smell to convert it easily as a red flag, these scams come and go in every trend but there is always a catch in the way they present them if you carefully take your time to observe, criminals always live evidence behind and that is what I'm going to share with you.

A scam is not limited in any form in crypto, they could be criminals that manipulate people into having their privacy and securities, scammers that generally steal a wallet or drain the wallet of people but the scams I want to share are limited to physical appearance, things you can look from far and detect that you are in the wrong place, some of this red flags are easily detectable but as I have said, greed is what makes many of us into places we are not to be which result to regret of being in crypto in the first place but I will share you some of the ones I have learned so far. Come with me as I share:

High APR and APY: These two are used as a form of reward for people that love staking their coins and tokens, and in return, they are given interest for a period of time, the two are different, APY stands for Annual percentage rate and APY stand for Annual percentage yield and the difference is that APR is compounded and APR are not compounded, so technically APR will be slightly higher but not much gap. The lesson is not about the difference but the percentage these projects gives which are ridiculous percentage as high as 100% to 1000% in other to make people stake their tokens to reduce inflation but they are scams mechanism.
When you lock your coins in any platform that promises high yield is always a trap for people to lock their coins and when the market is going down, you wouldn't be able to sell and whatever the APR they gave you wouldn't be able to compensate you for the loss, they are either scams to prevent you from selling or to take away your coins, no real projects offer high yield, you should be cautious of this when it exceeds 3-5%

Team: There is no good feeling like knowing the people around what you have in your portfolio, it may not be a guarantee of the success of what you buy to hold but knowing that people that are working behind what you invested in reduce the risk of scams and teams running and abandon what you have wasted money on. There are times projects go anonymous for projects like DEFI that are high risk as they always new and test, they do that for disclaimer purposes in case it failed which is the intention is clear. However, there are some projects that hide their identity by using fake ID are always scams because that's impersonation to give an impression of what they are not, this is one of the red flag people should detect during personal research, nobody will tell you this but you alone and the signs are there when they use fake ID from google and Stock images for impersonation.

Plagiarized and Lazy structure of the contents and website: A man that doesn't have time to think will lack tangible art to present and Ponzi schemes don't lack this from their master plan, they lack idea, they also lack reasonable solutions to problems, the only thing they know is to think out of the box to plagiarize another work and promise to do better in the original work so that people will think they are the real deal breaker, while in the process of doing this, they don't do it from scratch, they present the old idea and change the name and places that will looks similar to their scams. Oftentimes, you could see this from their websites, their documentation and whitepapers are copies of another idea and these are the signs to always check in any projects.

Under pressure to rush things: Real project will do their work at their own convenience without procrastination, they don't give into pressure, they take time to build and when they deliver or make announcements, they make sure they meet expectations and don't disappoint, they always work with the road map and keep people along the timeline with the mission they promise from the beginning but Ponzi and scams are easy to detect right from when they do crowdfunding and public sale, always in rush to make money so they can run away with people money without valuable result for the people, sometimes in public sale when they don't hit their scam target, they keep increasing the time over and over to continue their fraud until someone expose them of their scam.

Unregistered company and short time website duration: Another red flag to look out for is when a company that claims to have a project is not registered, a real company will be registered and fully recognized with a registration number to prove they are real and not fake individuals to avoid any doubt that will raise any form of suspicion. When they have their website registered in under a month and will expire in the following year is another thing to avoid, most of them do this to clean their tracks after scamming people with their Ponzi schemes.

Ponzi schemes and scams are everywhere and they will continue to exist but they can be avoided, you just need to be extra careful and sometimes look for the red flags, you will get one or two pieces of evidence to avoid them if you are not greedy, remember a safe investment is a safe mental health and safe future.

In general, don't invest in altcoins and shitcoins, you will be safe.