Scam Crypto Currency Red Flags

[Emma 611]

Really very helpful for not only the newbies but also for the olders. i was finding the best ways to judge a project and i got it from your post. thank you sir.

[Pegem 109]

5 minutes ago, wilbertson said:

I see this "whitepaper" thing in many coins official websites, but i never know what it means. Can you tell me briefly.

In it they provide the whole details of their project and its future. If you read at least one project white paper then you will know all about whitepaper. 

[GhoulSlayer 226]

On 11/20/2019 at 12:03 PM, wilbertson said:

I see this "whitepaper" thing in many coins official websites, but i never know what it means. Can you tell me briefly.

Looks like someone answered you already, sorry I was out of town. The white paper is like a business plan one would submit for a business loan except you are pleading to the public. Within the pages should be pertinent workings within the company like how they will market & grow, who the team members are and their qualifications, clear financials or where project will be funded, etc. Each one will look different but if you think of yourself as a loan officer when reading one, the red flags become much clearer.

Hope that helped explain a whitepaper in simple terms.

[Keith700 1885]

On 10/26/2019 at 10:10 AM, GhoulSlayer said:

We all want to invest in a legit company in the crypto currency world but like everything money related there are those who wish to take your money and run leaving you with nothing. Here are some red flags to help you determine if a token or ICO is not on the up and up.

 

#1. The Team Members

A real legit company will list the full names of all team members along with their background and experience. I find team members who also have LinkedIn pages with their full work history to be the most credible. Watch the photos posted. I have seen cropped, vacation and even cartoon characters. Unless a professional photo is present, I say avoid.

#2. The White Paper

Most white papers are used as a marketing tool. They will tell you about the service/product being offered. A rule of thumb is 2500 words minimum, it should have key product or service highlights. It is a marketing tool and should read like one. If the white paper seems unprofessional and doesn't leave the reader with a better understanding of the product or service offered as well as the benefits, it's a red flag the person didn't understand what the white papers purpose was.

#3. Blockchain & Source Code

Blockchains are a good thing. It's an open transparency into the dealings of a company who deals in crypto currency. The blockchain records everything that has happened since the company went live. Any alterations to a blockchain, like restarting a blockchain, these companies should be avoided. The source code within the blockchain should always be visible as this is what crypto currency is all about open transparency. If a company is hiding a source code something is not right and this token/coin should be avoided.

#4. Company Public Statements

A public profile and presence by a representative is vital to a companies image and public trust. Image is everything and the smallest public infraction can send even the biggest companies spiraling. How professional is the spokesperson? Does he or she always act with the companies best interest or are they combative? A company representative reflects the company, how the company works, how the company is run. Public statements become public record, and the utmost care for a spokesman must be taken into account, as their future depends on it.

While this is just a short list you may have other points to add and I encourage them all! Hey if you liked this post please give me some love!

The red scam flags are everywhere, the essential thing is to invest in renowned projects and not plasticod, there are many projects with a very hypnotizing marketing that only makes many investors lose money with incredible ease, the details of each digital coin must of being transparent and representative.

[teminalibug 309]

Thanks for these red flags, I know to invest in ICO one must do a little researcher and this topic will be my guidance for the research.

[nahidfresh99 465]

Thanks for pointing you to this important point, I also think that if we want to invest in a real company and get income from there, then the company's credibility is very important but if you look at the company in which you invest, you see that there is a problem.  Stay away from all kinds of companies and I think those team members are there  Stay away from them and you can consult on a topic from different places

[Crypto123 0]

Thanks for this useful post, these are really good points to know the credibility of new projects because most of the new projects are scam, but despite that there is still the possibility of fraud exists, there are professional projects in fraud and deception can cover all of these points well So caution is always required. For me, I no longer trust new projects anyway because I have already tried them three times and all of them were bad.

[dmnqe07 365]

Well said, this is very detailed post, this is the detail that not only for beginners but for those who are not really aware yet of ICO scams. this can really help those new crypto traders to avoid scamming. nice post, appreaciated.

[myaccount1 584]

4 minutes ago, Jona said:

Yes the lot of the crypto trading is in the trading and the crypto trading is not a good to the btc trading in the crypto is not easy to start trading is in the btc 

I think crypto or bitcoin trading is very simple and easy if you just give 10 or two weeks for research about trading then you will easily get daily profit from bitcoin trading.

[Migo 7946]

Thanks for sharing this with us, actually recently à lot of scam ICO are showing up and a lot of people does not know how to identify scan from real, even me but I don't trust them now like before 

[Sumayya 493]

The import thing  to check is the team members then the blockchain source code it can be a copy of another blockchain with no edition

[DORANBU0818 56]

This will be very helpful to all and can help to identify if it is a scam or legit, doing this will help to prevent loss of coins and the hardships pf the people.

[FlatterCar 696]

Really very valuable advice, because each new coin from the ICO pursues only one thing, namely to make money on it and then close. But here of course there are normal coins, which on the contrary continue to increase their strength in the future.

[CryptoDJ 712]

How difficult is the cryptocurrency, because even after reading everything you wrote in this topic, I did not really understand the difference between bad and good ICO. But if I understand correctly, what you're saying is that there are coins that are sold for profit and then closed.

[Afrizal rahman 2636]

This is very nice. I hope people read this guide. with this people will understand how to run crypto safely. I think people will be helped by this guide. I am very grateful to you.

[mani982 286]

From All exchanges and withe the contribution of all exchanges a team build and the main motive of this team is that Check All the detail about company and team of new projects and allow only those coin and projects which are real and have good team .Exchanges do not list any Shitcoin.

[Sagor 500]

To find out any scam project first need to know about the team members. if the team members is okay then need to check about the white paper.

[patitaycute 648]

We can also checked their historical background chart of their projects that it can be use as a basis to check if their legit or scam. The first idea was to not deceive of the large offers quickly.

[Sumayya 493]

On 1/10/2020 at 6:19 AM, patitaycute said:

We can also checked their historical background chart of their projects that it can be use as a basis to check if their legit or scam. The first idea was to not deceive of the large offers quickly.

Yes that is another way to identify a same project but by checking the team data again you can find out

[mani982 286]

On 10/26/2019 at 11:00 PM, bean said:

This sounds good, I hope it work out these scams ico are causing plenty trouble in the crypto world, if  this guide can safe many for huge loses it will be great thanks.

you are right it is good to clear all the crypto project and some institution investigate the projects and give them certificate that are good or scams it is good for whole crypto industry.

[Aereen 456]

These are very helpful guideline, especially for beginners and for hose who are still new int the cryptocurrency world. It is very important to actually do research first before engaging into something so that you will save time and money and that you will not get scammed.

[fuer44 1083]

I will add that the company ico or ieo will launch a new project, to provide information about where their tokens will be released earlier. because the liquidity of tokens is also very dependent on the liquidity of the market exchange.

[Sid 589]

In addition, we must also monitor the social media groups of the project. If the group is active and not filled with bots, the project has the potential 😅

[Win 1015]

There is a lot of scam sites most of ICO are so risky sites.they ate just there to scam investors they are just a dead hungry people.i realy hate now projects that are the owners are the same with the  old sites

[duncun007 3577]

i think the whitepapers of the coins that are old were very legit but nowadays we see whitepapers are jokes and the currencies dont even follow their own roadmap.