A Trustworthy Project or a Cryptocurrency Scam? Follow these LATOKEN Rules to Find Out
How not choose a cryptocurrency scam among thousands of cryptocurrency projects? Follow the rules from LATOKEN and don’t become a victim of a crypto scam in Autumn 2021!
In the cryptocurrency industry, new projects appear almost every day. For example, on the CoinMarketCap website, the number of tokens has already exceeded 12 thousand. Many little-known projects offer potential investors high returns and other favorable conditions. LATOKEN cares about its users and always wants to help them not become victims of a crypto scam. Let’s try again to figure out what criteria can be used to identify scammers and how to choose promising projects for trading.
The main feature of a cryptocurrency scam
One of the main features that most fraudulent projects have in common is promises of high returns. This criterion is also guided by world regulators when identifying pyramid schemes.
High profitability is hundreds of percent per month. Promises of profitability that are not backed up by any statistics based on the results of the project’s work for any reporting periods are considered almost 100% indicators of a cryptocurrency scam.
Rumors & hype are not a guarantee — you can still become a victim of a crypto scam
Any information about the project must be properly processed. Traders should not trust rumors, hype, various chats, and signals that come from other users. The perfect example is the hype around one project that was popular this spring. There was a lot of hype, but the analysis of the project showed that the top management just spent a lot on marketing. Due to the great popularity of this project, in April, there was a shortage of hard disk drives (HDD) and solid state drives (SSD) in Hong Kong.
What is more, when choosing a project for investment and trading, you should pay attention to the presence of large companies and funds among early investors. This can increase the chances of a project being successful.
Which projects should not be trusted
There are some criteria that dangerous crypto projects or, in other words, crypto scams meet:
- The project lacks a good technical base, a proven business model, and clear goal-setting;
- Lack of a clear and structured roadmap. For many projects, these milestones are often very vague and ambiguous;
- The company’s top officials are not disclosed or do not have sufficient experience to launch a cryptocurrency startup.
How to assess the potential and not become a victim of a cryptocurrency scam
To choose a promising project for investment, it is necessary to conduct a comprehensive analysis of the team, product, demand, popularity, and other criteria. Here are the factors that significantly increase the attractiveness of the project:
- Project movement within the framework of market trends (DeFi, NFT, etc.);
- The presence of large and reputable funds as partners and investors;
- Asset demand;
- Trustworthy top officials of the company;
- Availability of a demanded product or tool that may interest users;
- Active marketing campaign supported by market leaders;
- Solid liquidity of the project token;
- A transparent system of communication with its users;
- Regularly informing users about the development of the project.
If you stick to these rules, always do your research, and stay alert, it is unlikely that you will become a victim of cryptocurrency scams!
If you want to learn more about the most promising tokens through LATOKEN Review, crypto news and tips on avoiding becoming a victim of a cryptocurrency scam, follow us on Medium, LATOKEN Blog, or LATOKEN VCTV channels.
About LATOKEN
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.
