How to Spot Token Scams

Before You Buy

Research every token before buying. Here's what to check.

Red Flags

Anonymous team - Can't find who made it? Higher risk.

No product - Token but no app, no utility, no roadmap? Likely speculation-only.

Unrealistic promises - "100x guaranteed" is a scam. Always.

Pressure tactics - "Buy now before it moons!" creates FOMO intentionally.

Copied content - Website/docs plagiarized from other projects.

Concentration - If top 10 wallets hold 80%+, one person can crash the price.

Green Flags

Working product - You can use the app connected to the token.

Active development - Regular updates, GitHub activity, new features.

Transparent team - Real people with reputation to protect.

Community discussion - Healthy debate, not just hype.

Clear economics - You understand why the token has value.

Research Steps

1. Read the docs - Understand what it does
2. Try the product - Is it real and useful?
3. Check holders - Look at top wallets distribution
4. Find the team - Who built it? What's their history?
5. Join community - Listen to discussions, ask questions
6. Start small - Test with amount you can afford to lose

Common Scams

Rug pull - Creator drains liquidity and disappears. Check if liquidity is locked.

Pump and dump - Coordinated buying to pump price, then insiders dump. Look for organic growth.

Fake projects - Copies of popular projects with similar names. Verify official links.

Phishing - Fake sites that steal your wallet. Always check the URL.

Managing Risk

Only invest what you can lose. Tokens are volatile. Many go to zero.

Diversify - Don't put everything in one token.

Take profits - If you're up significantly, consider selling some.

Stay skeptical - If it sounds too good to be true, it usually is.