On how to identify scam crypto project

Scam alert image, source: here!

Anonymous developers

Past History

  1. Total anonymous developers. The biggest representatives of this group are PancakeSwap or Sushi, a million dollar projects that offer absolutely nothing much about the team or founders. Everyone remembers how Sushi started and got many lost their investment due to greed and fraud of one of the founders. Furthermore, I believe anonymity harmed the crypto community more than it offered in terms of privacy and autonomy. Most of the scam and fraud projects do not have an established team of developers, partners or investors.
  2. Pseudonymous developers. The mighty Bitcoin founder Satoshi Nakamoto real identity is unknown, but not his vision and work. This is the best of all worlds, to use something other than a real name, for whatever reason, personal privacy, legal or social, it is a common practice is real world and virtual. Either you are just a casual gamer or god on earth, doesn't matter. What matters is your past. Who are you, what have you done that put you in this project, and why you should be getting all the attention or money? I do not see a potential problem with this, if you are able to link a project member to their current platform. However, many fraudulent projects misusing it, by creating fake profiles and résumé. Conning people with fake identities is most common in real world cases, not only on the internet. Why? Because it creates more trust to trap bigger investments.
  3. Real people

Twitter Fraud

Example of a Twitter account of a fraudulent project
Fake followers audit for Elon Musk Twitter account
SparkScore audit for Elon Musk Twitter account
Fake followers audit for Jeff Bezos Twitter account
SparkScore audit for Jeff Bezos Twitter account
Fake followers audit for MMCrypto Twitter account
SparkScore audit for MMCrypto Twitter account
Fake followers audit for euro news Twitter account
SparkScore audit for euro news Twitter account

Do not follow or listen to Twitter Promoters or alleged celebrities

Price list of promoting a #giveaway by a Twitter account with 299K followers
Price list of promoting a #giveaway by a Twitter account with 299K followers

Plagiarism, copies & clones

  1. Instant rewarding: Unlike many other projects and businesses, the cryptocurrency projects offer instant incentives in the form of self-made tokens, which in real-world businesses called credits, or rewards, or in gaming industries, as a part of microtransaction system, can be used inside the game or platform. However, these cannot be swapped out with real money and only to be used for internal purchases, to upgrade services or something. On the other hand, in the cryptoworld thanks to a flawed system 1/ not being regulated in terms of monetary system, 2/ being anonymous, that the ownership and accountability is unknown, selling and swapping tokens to another form of cashable cryptocurrency is totally normal.
  2. Easy to copy and clone: making literally an operational clone of some of the token’s smart contract requires few days, if not few hours. As the most blockchain runs on decentralized public ledger, there is not a patent, or custody to preserve the intellectual properties or even filters or indicates the amount of plagiarism on a piece of code. I personally believe that more than 95% of blockchains and its products like cryptocurrency is just repeated and edited materials on the surface like a new solution or product to answer the problem or demands of the system. If the cryptocurrency environment was to be graded or assessed academically or professionally, most would miserably fail and ceased to pass or exist. Why is this happening? Mainly because of point 1. Secondly, lack of a controlling body, standardization or regulating institutions.
  3. Unparalleled business model: As it was mentioned on instant rewarding system, blockchain project that sell coins and tokens, do not need a service or product and therefore an established customer base to survive, it includes them in an unconventional business model. If you call a platform solution, the roadmap or white paper the business plan, the product and services, the projects existed for months and years, allegedly working on the plans and services, and made millions without accomplishing featured goals or offering solutions. Many projects got together by apparently famous or revolutionary developers that may were part of an original group of people like founders of Ethereum, started a brand-new project and in a few months could sell millions of token in some crowdfunding. This is sick and flawed.

High APR Yield Farming

Stay away from .swap .dex .fi .finance projects

  1. Does not provide independent liquidity, mostly are attached to the bigger dex or swaps, on BSC mostly using Pancakeswap, on ETH Uniswap or Sushiswap. They just reroute the service.
  2. Many are not offering a .swap or trading services, again using APIs from bigger DEXes like 1inch.io .
  3. Usually they offer high APR and therefore the native token has high expansion rate.
  4. The native token does not have a use, or offer a solution, only purpose to pay for farms and pools.
  5. Market is flooded and over saturated with these type of projects, therefore competition is fierce.
  6. It is the best option for a fraud and scam project. Easy to make just merely changing the names and graphical design of the website, cheap to run, and attractive enough for making millions.




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