For an investor who has some experience before investing in any cryptocurrency, there are many things he might check to ensure this project is not a scam.
1.He searches to see if there is white paper or light paper explaining the project. If he does not find it,
this is not a good sign. If there is, he tries to read it.
2.Try to verify the project's website and the existing products to see whether they are real or not.
3. Trying to verify the project's presence on social media platforms such as Facebook, Telegram, YouTube, Discord, LinkedIn, and other sites and examining whether the project has a real presence and interaction on social media sites or not.
4.Trying to verify whether the code is open source or not, and also whether the code is available on GitHub or not.
5.Trying to review and collect information about the team behind the crypto project and examining their experience and skills.
Sometimes information about the team can be found on LinkedIn or on the project's website itself.
6.Make sure that the project cryptocurrency is listed on popular and reliable cryptocurrency exchanges.
7.If the project is old, it may give the investor some confidence.
8.If the project is managed by a decentralized autonomous organization (DAO), this gives it more confidence.
9.Trying to examine the smart contracts for the cryptocurrency and the project and check what the blockchain network is that the project depends on, and trust increases if the currency is built on its own blockchain network.
10.Trying to track whether there is strong propaganda for this cryptocurrency or not, if there is strong propaganda, gives confidence in this currency.
11.Follow the project on various social media platforms. Are they talking about promising future projects?
If so, this also gives confidence when those responsible for this project talk about ambitious plans that
will take this project to a higher level.
12. Try to check the price in the recent period to see if the trend is rising or not. If yes, this gives confidence and creates the impression that this project may be profitable.
Now, from the point of view of an investor with limited experience, if he finds that the previous signs are positive, he believes that this project is guaranteed and not a scam.
But in reality, there are many projects that have all these positive signs and are just an organized scam,
and the scammers behind them know how their victims think and know how to deceive them.
Now let us examine more deeply and check other signs that reveal more facts about any crypto project.
1. Unfortunately, most crypto projects do not have an accounting or financial system that produces reports and financial statements that conform to standards.
But in real crypto projects, we will certainly find in the governance forums some financial reports,
"It may not be prepared according to standards," published about expenses, revenues, or even department budgets.
If we do not find any financial formation, this is a sign that this project is most likely a scam.
If some financial reports are published, check them. Do you find the expenses reasonable? Or exaggerated?
Are there good revenues that cover expenses?
Is the spending for marketing only, or also for programming, operations, and other development departments?
In crypto scam projects, you will often not find any financial information published anywhere, and if there is financial information, you will find that the expenses are exaggerated in addition to very low revenues, with the focus on spending on marketing operations to attract new victims.
2.Check the governance forum and other communication channels, such as Telegram, Discord, and other communication channels.
Do you find any objections or criticism from the members? If you do not find any negative comments, this is a very bad sign.
Mostly, there is no transparency, and they delete negative comments and ban members who have different opinions. These are signs of scam projects.
There is no crypto project, even if it is good, that does not have negative comments and opinions from members.
If there are negative comments and opinions, are there realistic and truthful responses to them from team members, or are they just ignoring, lying, and giving illogical answers?
Also, do not limit yourself to examining recent topics. Examine old topics on the Governance Forum and examine old discussions on Telegram and Discord. Search for negative comments and respond to them. You will learn a lot about this project.
Also, examining the Governance Forum is very important. Do you see real interaction on it?
Has the team responded to proposals and problems? Or do you find the forum empty of any interaction?
Try posting a proposal or problem and waiting for the reaction. Often, in scam crypto projects,
the Governance Forum has no real interaction.
3.Check the team. Do you find that all specializations are present? Or are they just focusing on attracting marketing employees and community managers?
Do they publish recruitment advertisements for various specializations?
Do they really recruit employees, or do these advertisements remain for months without recruiting any employees?
One of the signs of scam crypto projects is that no employees are added to the development, programming, and operations departments. Only they add employees to the marketing department.
4.Try to search for information about investors in this project. There are investors in the field of cryptocurrencies who are known to invest in scam crypto projects.
5. If the crypto project is managed by a decentralized autonomous organization (DAO), in previous votes, was there any cheating or manipulation? Are there comments or people providing evidence
that the voting processes for previous decisions are fake? Vote manipulation is one of the signs of scammy crypto projects.
6. If you find that the project code is open source and available on GitHub, this is not enough to feel confident.
Through GitHub, you should check whether there is real development and modifications being made to the project continuously or not, and also whether there is a team working on the project or not.
7. Examine the price and its movement since the beginning of the project, even if the movement began years ago.
If you find a sudden rise or sudden down, search into the project's history for the real reasons behind it.
You may find that there is manipulation behind it.
8. Check whether there are development plans announced or not and whether they are linked to a timetable or not.
Are the steps implemented at the specified times or not? Compare this project with similar projects.
Did they implement the same steps in the same period of time, or is this project later than similar projects?
In scam projects, there are no announced development plans, and if there are, nothing is implemented on time, and you always find similar projects taking more steps in the same period of time.
9. Do you find an exaggerated interest in marketing and promotion more than other departments?
Excessive attention to marketing and promotion is a sign of scam projects.
10. Are there serious attempts for this project to search for partnerships with other crypto projects? Are there real programs to develop and support this project?
Or are they just interested in trying to list the cryptocurrency on as many trading platforms as possible and build communities that cover multiple countries and multiple languages?
This is also a sign of crypto scam projects; the interest is not in developing products but in attracting people who will buy the cryptocurrency.
I know that applying these steps is difficult, tiring, and takes time.
But here we are talking about investing money. We want to make sure that we are not investing in a failed project or a scam.
The scammer may be smarter than we think. They try to make everything look good from the outside.
Or even projects that are not scams if you examine these points in this way and find negative signs.
You will know that this project will never succeed.
It requires a more in-depth study to ensure this investment. In the long term, success
I think that I was able to mention many of the important signs that should be examined in any crypto project, and perhaps many people do not pay attention to them.
