The crypto space is booming—but so are the scams. With thousands of new coins launching regularly, many are created solely to defraud investors. If you’re just getting started, knowing how to spot a scam coin could save you from massive financial losses.
In 2024, scam coins stole over $3.8 billion—often from investors who missed these warning signs. Here’s how to spot them before you get burned.
The 7 Deadly Signs of a Scam Coin
Transparency is key in crypto. A serious project should have a public team with LinkedIn profiles and verifiable backgrounds.
- Scam coins often list stock photos or made-up names.
- Some impersonate real people with fake social accounts.
- Check: LinkedIn/Twitter profiles of devs.
- Example: “SQUID token ‘team’ used stock photos (later rug-pulled).”
- Tool: LinkedIn Profile Validator
- Google their names + “crypto scam” and check LinkedIn or Twitter.
Legit projects always have a whitepaper that outlines their vision, technology, and use case. Scam coins often have:
- No whitepaper at all
- Vague or copied content
- A roadmap filled with buzzwords but no details
Tip: If a project can’t explain what it does clearly, it’s probably a red flag
Projects that focus only on hype, social media giveaways, or “get rich quick” promises should raise concern.
- Patterns:
- Paid influencers saying “100x guaranteed!”
- Telegram groups banning skeptics.
- Aggressive shilling with no real updates
- Fake community growth
Check the token supply, allocation, and distribution.
- On-Chain Check:
- 5% supply to dev wallets? Risky.
- Top 10 holders control >60%? Avoid.
- Tool: Bubblemaps
- Scam tokens often:
- Mint a massive supply out of nowhere
- Give 90% to founders or insiders
- Don’t explain how the coin gains value
Tip: If the creators control most of the supply, they can dump and crash the price at any time.
Does the coin solve a real problem? Or is it just another “revolutionary” token that does nothing?
- Scam tokens promise the moon but have no product, no users, no partnerships.
- Data: “Projects offering >1000% APY lasted <30 days on average (CoinGecko).”
- Screenshot: Compare legit DeFi vs. scam APY charts.
Tip: Check if there’s a working app, platform, or even a beta version.
Real projects undergo third-party security audits to ensure their smart contracts are safe.
- Scam tokens never mention audits.
- Or they fake them with fake audit badges or documents.
- Legit Auditors: Certik, Quantstamp, Hacken.
- Red Flag: “Audited by ‘CryptoSecure’ (fake company).”
Tip: Look for real audits from firms like CertiK, Hacken, or PeckShield.
- Check: Code commits and originality.
- Example: “ApeCoin fork had identical code but changed only the logo.”
- Tool: GitHub Code Search
3. Real 2025 Scam Examples (With Evidence)
- “AIChain”: Fabricated Microsoft partnership (debunked on X).
- “MoonDoge 2.0”: Liquidity drained 1 hour after launch.
- A copied whitepaper
- No working product
- A contract that blocked selling
4. How to Research Safely (Step-by-Step)
- Contract Check: Paste address into TokenSniffer.
- Team Vetting: Reverse-image search profile pics.
- Community Scan: Are questions allowed or censored?
5. Tools & Resources
| Tool | Purpose | Free? |
|---|---|---|
| Bubblemaps | Whale wallet tracking | Yes |
| DeFiLlama | Compare APYs | Yes |
| Certik Skynet | Audit verification | Partial |
Powerful Closures: Leaving a Lasting Impression
Scammers evolve, but these patterns persist. Bookmark this guide, and always DYOR.
Crypto is exciting, but it’s also full of traps and don’t let FOMO drive your decisions.
Got a coin you’re unsure about? Submit it for review.
