Topic: Identifying Scam/Shit Coins and Protecting your Money (Read 130 times)

Agreed, let the anonymous things to the project per si, devs must show their faces and background, even if they are beginners, the guy that helped to launch ethereum for example (Vitalik Buterin, mentioned as co-creator of ETH) was 19 years old, but look at the project. A huge success without any doubt. So most of times ins't a matter of a well experienced crypto background person, I guess.

i do agree on your pick which is #7, a good project must consist of a good and well develop team. Why would they invest in a project where thier members are anonymous

Yes. when you forget your community, you starting to fall.

Thank you for these points. I special like #7 where point out the little things. It's easy to forget that it's the community that makes anything successful and that they deserve to be kept in the loop especially if they have spent their hard earned money backing something they believe in.

Hi there,

For some people ins't so clear when a new coin have a good project/future or it's just a new shitcoin a scam or a "smart contract" that just will blow your money and run away.

I decided to pick some points that you need to verify everytime before you decide to put your money there.

1 - Premine
High premines are a serious problem, even "for bounties" or anything. I consider premines under 2% a "normal" premine. Of course it depends on the total supply.

2 - Masternodes Selling
Another smart way to disapear with thousands of money. I don't have a "correct" number for a masternode, but when a staff start selling dozens of masternodes, you need to take care.

3 - ICO
I think ico's aren't too popular nowadays just because the numerous falling projects / exit scam. Before entering on a ICO, you need to know at least what type of staff are envolved in the project, are they just a couple of kids on some place or a serious bussiness. check it twice.

4 - Bitcoin Clones
Not just about "forks" but a clone by itself, using sha256/scrypt, same or closer total supply, in fact, anyone actually can create a bitcoin fork or a new coin just using online tools and without know/write even a line of code. take care.

5 - Self Exchanges
Most of the scam coins brings the promise of have their own exchange. Why ? I'ts simple, inside of their own exchange any scammer can control the price of a coin, and most of times change the supply. This already happened dozens of times.

6 - Impossible Promisses
Blockchain and Altcoins are a revolution (serious?), but this don't mean that all projects will fix anything on the world. I personally don't believe in projects that's, for example are using a coin/token to develop anytype of AI (Artificial Inteligence), or for revenue webmasters against google adsense (by hidden mining), that uses/sell/defend "green energy", and I don't have so much faith in hybrids projects (physical enviroment x virtual). If you take attention, even bitcoin ins't used as they deserve on the "real world".

7 - Staff
What are the people that are envolved in that project ? In fact, scammers are creating new projects every week, and again you need to check if the project brings some smart/revolutionary solution or it's just a "vaporware" or vaporcoin to be better. and not forget to teach to the devs the number one lesson: keep the community updated at least once every day at the start and at least twice every week.

8 - Community
well last but not least, aways hear/read what the community are saying about, not just "oh good", but technical analysis too.


Updates and new tips for this topic are welcome.
Cheers