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3 WAYS TO SPOT SCAM PROJECT

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linlee
@linlee
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When looking for a project to invest and put your money into, there are some very important things to look out for and research about. They will point you to whether the project is a viable one that can grow or a scam that the founders (or rather scammers) are looking to make some quick bucks from. These things you should look out for include;

  1. Technology: Every Crypto project has a technology and that tech is aimed at solving a problem. You have to find out what this technology is and you will know the problem it seeks to solve. If that technology is viable then you can call it safe to invest in them. For instance, Bitcoin's technology was one that sought to achieve easy and quick peer-to-peer sending of money around the world. It was to eliminate third-party authority and give the owner of the money complete power over their funds. That was a viable technology and it blew up. If a project doesn't have a technology, run away as fast as you can. They will just promise you wealth through but won't tell you the process.

  2. Mass Adoption: This is close behind the technology. Mass adoption means is the technology capable of being used by a lot of people. If a project has the possibility of mass adoption, then you should probably invest in it. This is because as more people come into it, the demand for it goes up and so inevitably will the price. For instance, Ethereum blew up because it achieved mass adoption, new projects would require a Blockchain to host them. That is why till tomorrow, Ethereum will be a profitable investment so long as Crypto keeps getting mass adoption, Ethereum will also keep growing). If a tech can't get mass adoption, run from it.

  3. Founder and Team: You should know a bit about the founder of a project and the team that runs it. When you can't find the founder or the team behind a project then run away from it as fast as possible because it is probably a scam. Same goes if you find the founder but he or she has had a shady past. When the founders and team are shady, it's almost certain the project will be a scam.

Please be sure to carry out research about a project before investing. Scams will keep coming, it is your job to DYOR.