Rug pulls occur when developers create hype around a project, pump its value, and suddenly withdraw all liquidity, leaving investors with worthless tokens. These scams often happen in decentralized finance (DeFi) and NFT markets. To avoid this, research project founders check liquidity lock periods and analyze tokenomics. If a project lacks transparency or offers unrealistic returns, it could be a rug pull. Always stay cautious and do your own research (DYOR).
Phishing scams trick users into providing private keys or wallet credentials through fake websites, emails, or social media messages. Scammers create identical copies of trusted platforms, deceiving users into logging in. To prevent phishing, always verify website URLs, enable two-factor authentication (2FA), and never share your seed phrase. Use official links from project websites and bookmark trusted exchanges. If an offer seems too good to be true, it likely is a scam.
Pump-and-dump scams involve artificially inflating a crypto asset’s price through misleading hype and coordinated buying, only for scammers to sell off at the peak. These schemes often target low-volume or unknown tokens. To avoid falling victim, be wary of sudden price spikes with no solid fundamentals. Always check a project's roadmap, whitepaper, and community activity before investing. Sustainable growth takes time—don’t get lured into rapid profits with no real backing.
Fraudsters launch fake Initial Coin Offerings (ICOs) and airdrops, enticing investors with promises of huge returns or free tokens. Victims often send crypto for a presale that never happens or connect their wallets to malicious smart contracts. Always verify the project's legitimacy by checking team credentials, website security, and whitepaper details. Avoid sharing your private key, and if an airdrop requires unnecessary permissions, it’s a red flag. Research before participating in new token distributions.
Ponzi and multi-level marketing (MLM) crypto schemes promise high returns for recruiting new investors rather than through actual business activities. These scams rely on constant new investments to pay existing members, eventually collapsing. To spot them, look for unrealistic profit guarantees, vague business models, and aggressive recruitment tactics. If withdrawals depend on new users joining, it’s a scam. Always investigate before investing, and remember: if it sounds too good to be true, it probably is.
Scammers use deepfakes, hacked accounts, or fake endorsements from celebrities and influencers to promote fraudulent crypto projects. These endorsements create artificial trust, luring victims into investing in scams. Always verify official social media handles, check for legitimate partnerships, and avoid projects relying solely on celebrity backing. Real projects focus on utility, not hype. Never invest based on influencers alone—do your own research and look for solid fundamentals before putting money in.
Some scammers create fraudulent crypto apps or malicious smart contracts that drain funds once users interact with them. These apps may appear on official stores or be promoted through fake advertisements. Always download wallets and trading platforms from verified sources, review app permissions, and check contract audits before approving transactions. If a smart contract lacks transparency or has unnecessary access to your wallet, it’s best to avoid it. Staying cautious can save your crypto.