How To AVOID Losing Your Money To A Crypto TOKEN Scam?

Cryptocurrency and scammers are a match made on the moon, they are both anonymous with people ready to throw money at them for their chance to shoot to the moon! In this article we are going to reveal our findings and why 90% of crypto especially tokens are bogus and will drain your funds over time.

The Latest Crypto Scam
The Latest Crypto Scam

But remember to hold so everyone in the know can take their profits, buy back in cheaper then rinse and repeat the very next day. It never fails because there is a huge line of people ready to “buy the dip” or shill their social profiles promoting their chosen cryptocurrency they have invested into, with the hopes of reaching the moon.

While all this is happening remember to HODL! so everyone else can bring the price down with the rinse and repeat solution that has made many-many millionaires all over the world. If a coin or token does not have a utility and is just advising its subscribers on Telegram, Twitter and Facebook to keep shilling to friends and family to buy long term.

Then with their next breath advising investors to “buy the dip” because they want to tank it down again, But remember “JUST BUY THE DIP”!

Anyone can set up crypto and claim it to be better than gold once we reach the moon. There is no comeback if they pull the rug from under your feet while cashing out into stablecoins, due to them being a more stable coin that they know, will not get dumped or hit by the rinse and repeat scam, mentioned earlier.

The Crypto Scam

Checking For Crypto Scams
Checking For Crypto Scams

People are getting scammed daily and losing their money, people tend to be greedy by nature and will keep investing if they think they will miss out (FOMO). In this section, we will be revealing how a scammer makes you part with your hard-earned fiat money. You must always do your research and avoid scams if there are any hints of a scam then we would advise you to avoid investing.

  1. Build a free website to make your crypto look legit
  2. Make some claims about charity and various donations
  3. Write a white paper setting out some fake targets
  4. Even add some FAQ’S to make the scam pop
  5. Create a Telegram, Twitter and Facebook channel
  6. Employ some moderators/friends who also rinse and repeat
  7. They can also tell their minions to buy the dip and shill here and vote up there
  8. Hide the Whois (make your domain/URL anonymous)
  9. Setup hosting add content to make the site look good because this is where most investors make the decision!
  10. Deploy your token on Ethereum or BNB with a smart contract
  11. Add liquidity with Sushiswap, Uniswap or Pancakeswap
  12. Buy some advertising space, list on coin market cap plus others

“But not too much advertising space because once you get followers and people joining your telegram channel you just get them to shill and vote up the crypto on various sites making it look even more legitimate with more free exposure.”

Educational Content – From Full Value Dan

It’s a very clever scam, the scammers are getting the users who are getting scammed to promote and vote for their demise on their social networks. This then creates a snowball effect, so once people start promoting the scammer’s token more and more, people will start to buy thinking it’s the next moon shot.

Once the scammer thinks it has reached max levels they will take out 3%, 7% or 8% so the coin tanks, then advise its followers to “buy the dip”. Once the coin has recovered from the dip, they just simply withdraw the next percentage of coins in their wallet and rinse and repeat or until the token is at junk levels and no one will notice when they take out all their ETH/BNB liquidity!

How To Avoid Crypto Scams?

This is the milliondollar question! How do you know if a token is a scam or the owner will remove coins because they are greedy? There are only a few ways to confirm the token you are thinking to invest in is not a scam. But remember there is “ALWAYS” a chance that the coin/token could become a scam. Listed below are the many ways you can confirm crypto was created by a scammer with bad intentions.

  1. Check the whois of the website or blog promoting the crypto
  2. If it’s anonymous then they do not want to be named
  3. How long has the domain name been registered?
  4. How old are the social profiles and how popular are they?
  5. Another important step is to check where the website/blog is hosted
  6. If the owner claims to be from the US and the hosting is a faraway country & visa versa, then there is cause for concern
  7. Check the percentage of coin volumes within the holder’s wallet
  8. How many whales are waiting to drop their bag?
  9. There should be over 60% held in a locked/liquidity wallet
  10. If there are many holders with a huge percentage of the coin then that is even more cause for concern

After checking these details and you can confirm any of the points above then avoid this crypto like the plague. This is because you will likely see your funds disappear overnight, yes you might get some pumps but the owner of the token contract will always take their cut while encouraging the investors to shill and vote for their shot to the moon!

Altcoins = Alternative To Bitcoin
Altcoins = Alternative To Bitcoin

The Worst Crypto Types For Scams

By far the worst culprit for scams are tokens, especially BEP20 & ERC20 types. These run off the back of the Ethereum blockchain and Binance blockchains. In the last 6-months these pump and dump, plus honey-pot scams are becoming the norm. Another issue is Ethereum and Binance have done zero to reduce these scams, but that is probably to do with all liquidity and fees are paid in BNB or Ethereum depending on the blockchain the token is run on.

The Best ERC20 Token List
The Best ERC20 Token List

Conclusion Of Crypto Scams

If it seems too good to be true then it most certainly is! Be sure to DYOR – do your “OWN” research and always double-check them twice before making a decision. Do not be persuaded by a tweet, nice doggy name or a moon type crypto, they are all built off the backs of more popular dog and moon altcoins.

If the name sounds like another coin with a baby or safe in the name then you should avoid it because your finances will be at risk. There are so many horror stories around the world with investors losing their homes, cars and livelihoods to crypto scams. If you do not have the money to lose then avoid new tokens or the latest craze for the millionaires who have money to burn.

Have you been scammed? We want to hear about it, feel free to leave a message in the comments below. This helps our readers to determine the truth and new techniques being used by crypto scammers that are turning into a major cause for concern.

2 thoughts on “How To AVOID Losing Your Money To A Crypto TOKEN Scam?”

  1. I was hit by Leash by Shiba Inu lost a lot of money and they just dumped that over a few weeks. It felt planned, the token owner said Leash is going big very soon in the Shibswap and I bought 8 at 3.4k each and lost a lot, I bought 3 so pretty pissed they done that. Also, no come back and they are still saying the same for the newbies to get sucked in.

    1. Hey John,

      Yes, a lot of people were hit with that one. They dumped a lot of tokens in those two weeks after ShibaSwap was released and we were also hit. Vitalik Buterin obviously had it planned with all his team to drop a big chunk because Leash became obsolite straight after. If you look at the wallet addresses making the trades/dumping around that time, they were the same holding billions of Shiba Inu and also BONE which was only released a day after, way to many coincidences. It was one big dump, but again they get away with everything and can just do it all over again…

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