Signs of scam projects

6 min

Признаки скам-проектов

When investment projects don't fulfill their promises - abandoning product development, suspending payments - it's usually called SCAM. The word comes from the English word "SCAM", which means fraud.

In the cryptocurrency environment this phenomenon occurs especially often, because it is easier for its creators to remain anonymous, disappearing together with the attracted funds.

Scam projects can be divided into three types:

  1. Targeted scam. Originally created as a scam for the purpose of deception. Can be implemented in different ways: with a massive marketing campaign, fundraising and elegant disappearance to a small ad in Telegram, collecting pennies and quitting the game. The goal is the same - to embezzle your money.
  2. Gradual Scam. The project slowly gains momentum and at first keeps the promises it made to depositors. But after a few months or six months, for various reasons, it disappears from the radar of investors.
  3. This is a delayed scam. The project behaves in good faith and sincerely does everything that it promised. Pays dividends, develops the product, etc. Such projects exist for years, and investors can make good money on them. However, at one point, the project's income declines, then in the absence of a rescue plan and the will of the funders, the project is shut down or simply abandoned. At first until better times, but more often forever.

In this article we will touch on the signs of the first type of scam, which is initially conceived as a scam.

Suspiciously high returns

When the founders of NFT-project connect steaking and 50% income in one sentence, claiming that their tokens will bring you such a yield, you can safely unsubscribe and complain to the Telegram administration channel. This is definitely a scam.

Steaking cannot bring such a yield. It is only possible in the very short term for a period of one week, for example. But not on a permanent basis.

Low social media activity

Scam projects don't like to communicate with their audience. Their goal is to promise a lot and attract as much money as possible under this beautiful picture. Such projects in TON, as a rule, release only reminders about presales, discounts and talk about how cool their NFTs are. At the same time there is no information about the development of the claimed utility collections.

Failure to meet the roadmap

Adequate developers always have plans, and great developers have plans that come to fruition. NFT-collectors often post a roadmap on their channels. How logical, consistent and, most importantly, feasible it is will need to be determined by you.

A guaranteed way to understand if a project has a quality roadmap is to look at the past. If the developers passed the previous milestones on time, then you can assume that the team is capable of implementing the next items as well. By the way, if a project does not have a roadmap, it does not automatically mean that the project is a bust. There are projects that feel fine and do not deceive their users.

But if there is a road map and it looks something like this

  • Q1 2022: Project launch.
  • Q2 2022: Marketing campaign.
  • Q3 2022: Mint collection.

Then, invest in this venture is not worth it. Good collections have a mint is just the beginning of the journey. All the major work to get the project into the marketplace is yet to come.

Anonymity of the team

The guarantee of an NFT project not being a scam is the openness of the team to the community. If the developers share their names and the names of their key experts, talk about their previous businesses, send video messages and hold broadcasts with subscribers, then they can be trusted. It means they're confident in the project and their own strengths since they've put their reputation on the line.

If the team isn't open to the audience, however, that's a wake-up call. This does not mean that they are 100% scammers, perhaps they are just introverts and like to do the work without disclosing their personal data. But in conjunction with other signs, it already indicates that the issue of trust in the project should be treated with special attention.

Example of a scam project on TON

Surprisingly, not many collections have scammed on our blockchain. Many teams are experiencing serious difficulties, especially with the onset of cryptozyma, but honestly continue to row forward.

But here's one bright representative of the scam crowd, the TON Panther NFT collection.

A brief chronology of posts on the Telegram channel:

  1. Channel created.
  2. Written introductory post with a simple picture and praising the collection.
  3. Launched the presale.
  4. A set of pictures is shown.
  5. Messages about payments for tokens.
  6. More pictures.
  7. A reminder about the presale.
  8. A 50% discount.
  9. And so on...

No website, no roadmap, no communication with the community, no openness of the team. Nothing, only promises, unaesthetic NFT and presales, presales, presales. Posts from the creators of a long time no and probably already will not.

In conclusion I would like to say that the projects should always analyze. Even from a team of famous people, even if your friends recommended the project. Often, beautifully packaged projects with great prospects immediately evoke a desire to buy. Especially if the discount is only valid today. This is called FOMO - the fear of missing out on a profitable offer, which over time can turn into a phobia. But that's a topic for another article.