Welcome back,
In today's blog, I am going to share about how to identify a possible crypto scam token before you get scammed by them. There are many tokens in the industry that just come to scam normal people, especially those who are new to the market and want to make multiple X returns. For example, there are so many projects that come to the market and offer mining services by selling you some packages for monthly basis.
There was one of the mining websites I remember where I myself paid a few dollars and the return on investment was amazing there. They maybe were refunding your investment in just 12 days or 13 days and after that what you earn was the profit. So I have myself been part of such scams.
Though it was long back, maybe around in year 2019-20 when I used to participate in such type of websites a lot, because at that time I was in the university still pursuing my things, learning, and as every student needs financial support, I was looking for that and that's how I end up falling in it. Today the scams are of different level. Now you don't have to just go and participate in these type of websites, though there are still similar scams where people are asked to invest money and then they get daily return of some percentage and whenever you get gains like that from any project, it is probably a scam.
For example, there was a project recently in which most of my family members as well as relatives participated where they were earning around 70-80% yearly on their investment and I clearly told them that this is going to be a big scam one day and they will cry. And guess what, the project owner has already ran away in just two years of time.
Now what you can do is, you can identify these scams by two things, first of all go to their official website and see the team working on the project, if there is no real data about the team working on the project, that is the first red flagged, then go to their official social media handles like Twitter, Telegram, Instagram, etc and see what is the progress there, if they are left dead, then that is the second red flagged, third and most important, learn how to use block explorer and go and check the block explorer for the token and see the holders, if majority of the tokens are with the top few people then that is the third and most bigger red flag in my opinion.
So these are three things which anyone can easily go and see and understand if a project is a scam or not, so stay safe because the market is on the rise and now a lot of scams might appear in order to earn something from you, the greed will increase in people as once the alternate start, the people around internet will start sharing tokens that are worth 5x, 10x or even 100x, don't follow them blindly, do your own research and then only invest in any token, if you want to stay safe, I will still ask you to go and invest in some top tier tokens, there you might earn only 2x to 3x but you are not going to get scammed.
Thank you and happy trading everyone.
