Sunday, February 25, 2024


> Hi everyone, investing and participating in “junk” projects on grass floors, especially DEXs, is always very profitable, but the rate of losing money when investing in those projects is also very large. Here are the common scams and scams of projects that everyone should know so that when investing, there are preventive measures!! **POOL WITHDRAWAL **Scams by liquidity withdrawal are most common in DEXs. Anyone who hunts goods on DEX is not too strange. Specifically, at first, these scam projects often invest in a very methodical construction, then release tokens and list them on DEXs through liquidity pools such as Uniswap, Pancakeswap. Next, through marketing strategies, they will attract the attention of users on social networks such as Twitter, Discord, Tele, etc. to entice people to add liquidity to the pool. This will cause the price of that coin to increase and at some point, the dev team will withdraw the pool to take profits and investors lose everything. (most often happens on decentralized exchanges) The most typical of this case is the SushiSwap incident from the beginning of the anonymous project CEO Chef Nomi. After being listed on Binance and the price of SUSHI peaking, founder Chef Nomi suddenly pulled out a huge amount of liquidity worth $14 million and pushed the price of SUSHI from 9u to just 1u in less than a week. After that, due to community pressure, he had to give power back to Sam Chuan. After that, Sam curly handed over rights to 0xmaki, with the vampire attack strategy, which was a fork from Uniswap but paid users higher than Uniswap, so a huge amount of traffic pulled into the project at this time. Although CEO 0xmaki pulled the project from 0.7u -> 23u (~x40 times in the uptrend 2021) and then 0xmaki also left the project for no reason (0xmaki later and until now is in the founder of Layerzero + Stargate Finance + Aura Finance) *Signs of scam project :* * **High APY promise is always high**: If a project promises you sky high APY then ask yourself if it must be a ruse to attract investors to put more money into the pool. * **Low liquidity**: Low liquidity and trading volume can make the project more vulnerable to price manipulation. A project that is considered to be liquid should have a volume > 10-40% of its marketcap * **Liquidity is not locked:** Crypto projects if they want to go long distances, they will often lock the pool to protect the project and the token. When liquidity is locked, the dev team cannot sell tokens, committing to long-term project development, thus eliminating the risk of scams. Coins with locked liquidity are considered more reliable, and in general – the longer the liquidity is locked up, the better. How to check if a project has a pool lock or not, please read this article: **(How to check if a project has a Liquidity Lock?)(** ** THIS IS THE COMMON MODE OF BUYING OR Bad images will impersonate a celebrity, like Mr. Ryan. Post to the fake Tele group and ask the buyer or the dev team to create a project and then manipulate the functions on the Smart Contract to only let others buy but cannot sell the token. In addition, there is a more blatant form where the project can mint more tokens to sell. In such a case, when the token price has been pushed high enough, the project developers will discharge all the tokens they are holding and disappear, leaving the investor who still holds the token but cannot sell it. However, there are still some cases where famous projects have been successful like Dydx I checked, their lines of code are allowed to mint tokens because of that. The most important thing is still to check the backer of that project, whether they have the potential and want to go for a long time or not with a little-known project on DEXs, they need to pay attention to the mint function to add tokens. There are some obvious signs that you need to watch out for to protect yourself from these scam projects: * ***Buy Only:*** As I mentioned above, you run the risk of not being able to sell the coins you keep in your wallet. Coins that do not have a selling function are often considered a scam. * ***Anonymous team***: If there is very little information about the origin of the project or the founders behind it then you need to be wary. An open and transparent leadership team is less likely to be behind a scam project. * ***Small error:*** These signs are inherently easy to detect but often overlooked by investors. Squid Game project example. There are countless signs that this is a scam: The project’s website, brochures, and whitepaper are full of typos, grammatical errors, and vague statements. The project’s Telegram channel was only created a few weeks ago by an unknown person. Virtual interactive Twitter account. * ***Token Allocation:*** Check how much % of circulating supply is currently held by developers or is it located mainly in 1 – 2 wallet addresses? by chain explorers. If so, this could very well be a sign of future price manipulation. However, like I said, it depends on the project and depending on the time **SCAM ICO** Scam ICO is a fairly common scam after the ICO trend in 2017. The way this scam works is very simple: scammers launch a new crypto project, propagandize and advertise this project with promises to the sky. Sometimes they even hire celebrities to PR their projects. After having collected a large amount of money from investors, the scammers abandoned the project, took the money and disappeared. This form is quite common and even experienced people like Mr. Ryan have experienced problems when investing but not paying tokens ūüôĀ *To make sure you are investing in a really worthwhile project, check out a few signs of an ICO scam below:* * ***Anonymous team/has a history of fraud***: Although anonymous is not necessarily a scam but has been a scam or has done a scam, most of them are anonymous. Investment * ***Small website/whitepaper***: While there may be poorly designed web pages or whitepapers and lack of detailed information because the project is still in its infancy, it can also be a sign that the project is about to be a scam * ***Roadmap is not focused***: No matter how grand the project sounds and what stage of serious development it is in, a project’s goals and objectives should always be clear. past and future milestones Be wary of projects that have a sketchy roadmap, lack of information, or even no roadmap. * ***Project with little interaction with the community:*** A passionate and committed founding team that knows real interaction with the people they serve. If the project wants to develop for a long time, it will always inform the community about the latest developments, changes of the project, etc. If the founders always hide themselves and almost do not interact with the community, this is probably a sign of an ICO scam. **HOW TO PROTECT YOURSELF FROM SCAM PROJECTS** **Research carefully about the project before investing** Whatever project, big or small, should take the time to research the project carefully, find out information in the whitepaper, website, Discord, Telegram pages; check information about the development team, advisors, technology behind the project, … its before down the money. Although this information cannot guarantee 100% that the project we are interested in is not a scam, but it can limit that and it can also provide many aspects, useful information when learning a project The process of project research steps, everyone read **Check smart contract** Smart contract is a protocol capable of automatically executing terms, controlling and recording crypto, a stable transaction, an event data,… . However, not everyone is knowledgeable about the code to be able to check smart contracts. So now there are many services that support smart contract checking like RugDoc or RugScreen to detect projects with abnormalities in the code. Here are a few signs that a project might be a scam: * There is no source code on Etherscan, Bscan, etc. * Source code displays the message ‚ÄúThis contract contains unverified libraries‚ÄĚ. This means that project developers only publish part of the source code of their smart contract. This is also a suspicious sign because transparent projects have nothing to hide. * Smart contract calls to another smart contract without source code: this is a sign that the project only allows buying, not selling tokens. Specifically to check this, please re-read this article: ** (CHECK TEAM DEV’s MINT/BURN TOKEN BEHAVIOR FOR SAFE PROJECT ASSESSMENT)(**:// 48211944125856/)Using support tools** People can use support services, bots, tools, etc. to check if the coin/token you buy is locked from selling function right from the moment you buy it, for example @SAFUScannerBot, @SafeAnalyzerbot or @0xAuto( )( Some bots can even foretell whether this token can only be sold or not and how much it will cost to sell if sold, etc. This article will list simple smart contract checking tools: ** (Read now the Smart Contract check experience is summarized in just 5 minutes) ( . In order for your assets to be good, you must protect your personal wallet carefully.. Make sure that your private key is kept in a safe place and do not give it to anyone under any circumstances. Besides, if the capital is large, it is also advisable to use cold wallets because of higher security and safety. Everyone read these 2 articles for instructions on how to secure your wallet: **( CLASSIFICATION OF Wallets AND HOW TO PROTECT ASSETS IN THE Wallet )( to secure safe assets in crypto market/ 09785268/)** ## P/s : Fun photo from Coinbiz

Source: Collector



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