Token sales in 2025 still attract investors looking for high returns, and yet in the excitement of upcoming ICOs, IDOs, and IEOs, there are hidden dangers. With illegal crypto transactions at an all-time high, likely to exceed $4.3 billion stolen this year, it is now essential to notice and spot scams so your money is protected. In this document you will find some risks, red flags, and approaches to take when investing.
We are starting to see a better regulatory environment (especially the EU blurring MiCA style regulations), as they continue to improve. However, scammers adapt quickly and create complex and sophisticated situations for retail participants. Some of the popular scams include fake endorsements, and pumped and dumped schemes. Many or most of the scams involve meme coins or new projects that are unverified. By seeing these potential threats at these early stages, investors can avoid losing large amounts of their money. We've even seen deep fake videos with Elon Musk and others endorsing scam sales.
Understanding these dangers is not easy. Investors must also keep a vigilant eye on many facets of each project, from the credibility of the team to patterns of transaction activity. The following pages will outline the common issues or scams and offer you some actionable advice.
New and Emerging Patterns of Fraud Targeting Token Investors
Scammers in 2025 have an advantage because they can use modern technology to set up convincing scams, with AI playing a key part in their scams. Examples of identity fraud scams include video deep fakes and audio deep fakes which pose as celebrities or influencers endorsing the launch of fake tokens and tricking users into sending currency to fraudulent wallets. Pig butchering schemes build false relationships in order to illicit investments, but they have transitioned to include the crypto framework, promising access to upcoming sales. A new threat is now making headlines and it is violent extortion potentially related to crytpo holdings. Scammers can now access private data which leads to demands for ransom in tokens. Meme coin rug pulls are still popular, we see yet again that when the developers create fake hype and inflate the price before abandoning the project it still seems to work.
Here are a few things to establish early detection:
- Always check endorsements on official channels.
- NEVER respond to the unsolicited DMs/email that promises "guaranteed" returns.
- Use blockchain explorers to examine wallet histories for suspicious activity.
These are simple things to work on that help proactively reduce emotional levers that scammers prey on, such as FOMO.
Evolutions of Phishing Attacks and Fake Websites
Phishing is evolving, instead of sending generic phishing emails, sites are being set up to mimic launched platforms (and using AI for their interface) to acquire the crypto wallet credentials (for example, you follow a unique URL into a site thinking you are there to buy your token and you get drained of wallet assets). With web3 type projects, in 2025 look for very realistic payouts and domain credentials; these scams often use AI for the interface possible leading to drains of the wallet when purchasing in their new token.
Suggestions for reducing phishing risks:
- Bookmark official URLs, never click links from ads or social media.
- Enable 2FA on all accounts.
- Scan the website with tools like virus total before using.
Team and Documentation Scrutiny to prove legitimacy
A typical risk associated with new token sales, that is undefined, is the non-verified or anonymous team, leading to big potential rug pulls. Legitimate projects will always share the team members backgrounds and previous successes on things like LinkedIn accounts. Scams avoid these highly successful practices and instead use stock photos or have no information.
Whitepapers need to contain clear use cases, roadmaps, and specific details about their ideas. The moment it appears fantasy, vague document (plagiarized) then avoid it. Big hints for scammers is excess jargon and no substance.We will consider verification methods first:
- Cross-check the information the team has published on Crunchbase.
- Look for any code audits, i.e. some audit firm like Certik.
- Check their GitHub to see if they are active.
These checks will help to clear uncertainty on projects viability.
Warning Flags for Financials and Tokenomics
When it comes to tokenomics issues its risk profiles will often hide red flags, such as, over 20% allocation to founders, which allows for market manipulation. Return on investment (ROI) is unrealistic and if a project is telling you overnight you can achieve 100x that you are probably too greedy and looking for a pump and dump. The FATF includes high risk jurisdictions such as; structuring small amounts in different wallets to avoid reporting and using high risk jurisdictions to do business.
Here's how to strategically review financials and tokenomics:
- Look at the supply distribution on CoinMarketCap and lookout for people who are holding most of the supply.
- Note the unlocks and what that can do for dilution on the potential of your investments.
- Never invest in projects which do not have lock ups on any of the team tokens.
We can use this data to help avoid jumping into projects that may be trying to inflate their value.
Warning Flags for Marketing and Community Manipulation
If marketing muddies the water, and has simply been overhyped without substance, expect things like excess social media spam, and paying influencers on social media or investing in projects which are paid promotions and not disclosured, this can lead to artificial exuberance. Look out for communities with poor engagement such as scant Discord or Telegram activity or any channels that are packed with bots, indicating very little organic interest in the project.
Watch for:
- Overly aggressive FOMO in advertisements.
- Comments on announcements disabled.
- Flat price spikes occurring without any news.
- Cross-reference posts in order to verify the level of hype outside of what you are consuming, verify with reviews on Reddit.
Warning Flags for Scams and After a Scam Does Happen
There are prevention tools, such as wallet trackers (Etherscan) and scam databases (Chainalysis), you can always report to the authority itself (such as the FTC) or your local cybercrime unit.
If a scam does happen, you can:
- Contact your wallet providers to see if they can try and reverse the transaction (very slim chance)
- File a complaint with the IC3 would conduct the investigation.
- Do not pay recovery services, many will target individuals who are victims of scams and have to pay for up-front recovery service.
These options will lower the severity of your damages and could get you your funds back.
Conclusion
In conclusion, 2025 is going to be ripe for some of the greatest risks in token sales imaginable, between AI deepfakes, rug pulls, and now you have your thorough scam spotting guide, you might be able to protect your investments. Remember to look for things like the team, tokenomics, and marketing, and be mindful to use verification tools, you can alleviate exposure to scams, which reportedly has cost investors billions this year!
Remember - due diligence is more important than hype, invest in many projects instead of few, and learn as much as you can from reputable sources and keep an eye on the market, and the trends. We want to take potential pitfalls and turn them into informed decisions while also making crypto a safer place.
At the end of the day, the best advice that you have against the threat, is awareness and to be cautious.
FAQ
- What are the top two scam trends in 2025 token sales?
AI deepfakes impersonating influencers and current pig butchering schemes that build trust in a fraudulent way in order to extract funds.
- How can I spot fake teams in upcoming projects?
Watch for anonymous developers, stock photos, or people with no verifiable experience and cross-check the information on LinkedIn and Crunchbase.
- What tokenomics issues can smack of scams?
Teams allocating too much token to founders, claiming 100x ROI promise, or poorly described mechanics on a supply.
- How do scammers manipulate communities?
They are good at marketing, and there are methods of contrived hype, like bot filled channels and excess social media pushes, and organizational FOMO like comments disabled or overwhelming spam on social media giveaways.
- What should I do if I am scammed in a token sale?
Report to the FTC or IC3 as soon as possible, contact your wallet provider, stay away from recovery services which are independents with no identity.