7 Ways to Spot a Scam Project (coin)

In 2018, cryptocurrency scams accounted for over USD 1 billion in losses. Not to be outdone, scams are popular in fiat currency too, in 2018, consumers reported losing roughly USD 1.48 billion to scams in the US alone.

"... scams are popular in fiat currency too, in 2018, consumers reported losing roughly USD 1.48 billion to scams in the US alone."

BXB emphasizes the safety and security of its customers. One of the measures we take is to manually check each ID that is registered to our platform, which is much more secure than an algorithmic check, popular on other internet platforms. As smart traders, it’s important to keep in mind and beware of the scams and tricks that exist on the trading markets.

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Here are Seven Ways to Spot a Scam Project:

1. The project uses Open-Source Code
  • An empty or non-existent Github is a sign of a scam.
  • Check their Git Hub, Git Hub is an open-source code control system. The hub is where developers store their networks and projects.


2. The project doesn’t have a Proof-of-Work or Proof-of-Stake or Proof-of-Connection etc etc…

  • A miner is the only person capable of registering a transaction of the cryptocurrency the crypto network.
  • To be sure the miners have done their job, or to confirm that the project exists in the currency you want to invest in, you can ask for a Proof-of-Work.

3. Check the project’s team

  • Most successful projects have a team of developers and creators bringing the project to life. Make sure you carefully check the background and as much information as possible behind the team who created the project. Often times, scammers create fake biographies and other details about themselves. A thorough check of the team, is a good way to make sure your investment is in safe hands.

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4. The Project has Plagiarism

  • Research the text from the website, or other information about the listing, to confirm that it’s original content.

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5. The Project has a poorly designed website

 

  • If you notice the White papers are incomplete, or they provide you with a poor quality «official» company license, be strongly suspicious.
6. The Project is Poorly Communicated

 

  • A scammer often has a low budget (probably why they start scamming at the first place). The language could be poorly written, or plagiarized as stated above. If the project can’t take the time to double check its grammar, or make sure their writing is clear — it could be a sign that the project isn’t real in the first place.
7. The Project has Unrealistic Claims
  • If the project is guaranteeing a daily or monthly return, be skeptical. It’s almost impossible to predict consistently fixed profits. If the project is too good to be true, then it probably is.

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Scams are common in any industry,  but when it comes to many , the smart investor is a safe & critical investor. Just as one of our articles points out, many people have become rich thanks to Cryptocurrency,  so can you, with the right tools.

Curious about how BXB lists its projects? Our Head of KOR/JAP market, Haena Kim, wrote an article about how we evaluate projects here