First⤵️
I saw a lot of buzz on X and Telegram about a new meme coin. I did a little research and the coin seemed like the big thing coming and was going to the moon.
Every influencer promoting it had a follower count of over 100K, which was fake. There was no website, but it was marketing itself on social media, especially Telegram.
The team was completely anonymous, but I ignored that due to the hype. In general, I decided to invest in the presale and had to send some coins (SOL) to their wallet, and I expect to receive their token in return after they raised over $300,000. They added some liquidity for a decentralized exchange.
The price went up suddenly, then the team pulled all the money, and the price collapsed to zero 😂
When I thought about the topic, I saw there were clear warning signs
Anonymous team
Aggressive marketing
Unrealistic promises
I learned from experience the importance of thorough research and verification in the scam world
Okay now I'll explain to you
How to avoid falling victim to fraud⤵️
Understanding profit withdrawal processes:
Launch and hype:
Scammers launch a new token, and they promote it excessively online with a large number of followers on social media, influencers promoting the token, and a very bad or nonexistent website
Initial investment: They might invest their own money to create a false sense of security and credibility. They might have a token economy and a roadmap.
Price manipulation: Through marketing and limited initial supplies, the price is artificially inflated. You get a chance to invest in the presale, and also through any decentralized exchange where they add liquidity.
Withdrawal: Once the scammers gather enough investments, they withdraw everything, causing the price to collapse.
Mineable tokens: Some creators leave the option to mint more tokens, which leads to dilution of the existing tokens' value and decreases your investment value over time.
Warning signs:🔴
-Anonymous team: Beware of projects whose team identities are unknown
Unusual or nonexistent token economy: Be cautious if there are large parts of tokens held by certain wallets.
No audit: legitimate projects often have their smart contracts audited
Excessive hype: Beware if the project relies heavily on marketing instead of substance, this is considered a warning sign.
Promise of quick profits: Promises of high returns in a short time are a clear sign of fraud.
How to search:
Community comments: Look for real discussions and comments from the community.
Business record: Check the team's previous projects and their reputation.
Smart contract audit: Check if the contract has been audited by a reputable firm.
