Within the cryptocurrency community, the word “scam” is often applied to dubious startups and initial coin offerings (ICOs). When a project does not bring anything good, it is called a scam.
Scammers want easy money and create tokens that can easily be canceled. They attract potential investors with promises of mountains of gold, rivers of milk, and honey. As a result, the project developers collect an impressive amount of money and vanish. Of course, small investors, especially newcomers to the crypto-currency market, lose out on this market and are left with nothing.
How to identify scam crypto projects?
Here are some “symptoms” which can help you understand that the project you are involved in is a scam.
The project’s website or platform has stopped working. If no site failures or planned technical work were reported in advance, this is most likely the first sign that the project is heading for its decline.
Abnormal superprofits. Here, the founders of the project pull the strings of gambling of every person, and especially an inexperienced investor.
Works as a tote. You invested $1 and got a profit of $100, invested $100 and got $1000. Of course, at some point, a person will bet a huge amount and eventually get nothing. Because the scam has already taken place. The Creator of the project got rich on you.
Problems with technical support. If your questions are systematically ignored and are not responded to, that is a reason to worry.
Too much advertising. If the project suddenly begins to PR and praise itself for no apparent reason — something is wrong. If they say “everything is good” — everything is not good at all.
The problems with the withdrawal. If tokens become more difficult to transfer to fiat money — this is quite a problem.
Okay, I got into a scam project. What to do?
When the first signs of a scam are detected, the main thing for investors is to withdraw their assets.
Often, payments are not blocked immediately for all participants. Check the ability to withdraw regularly. If there is a possibility of internal transfers on the platform, it is not superfluous to create a new account and try to withdraw funds through it. Sometimes it also happens that only small amounts are withdrawn. So try to withdraw funds in parts.
Don’t panic. Perhaps, even after the first signs of the scam, the project will last for some more time and even partially resume the payments.
You should also write to the project’s technical support and inform them that you can’t withdraw funds. You may need to specify that you are a popular blogger or an employee of a resource monitoring site, and you will be forced to tell your audience that the project has been scammed.
Fraud is ineradicable. In fact, it is everywhere on the Internet: in emails, social networks, on various sites. Over the years, attackers invent new techniques, but the basic mechanisms of deception do not change. Only the users themselves can make their life in the virtual space safe.