Guidelines for Scam Accusations In Crypto

[admin]

Launching a crypto project is like launching a business, it might work but have a high chance of failing.

How to know then, if a project/coin is a scam or not?

Here's the obvious red flags:

1- Rug pull: If rug pull happened, you have been scammed. By removing the liquidity pool, you are stuck with whatever coins you bought.

exception: The only exception would be if the removed liquidity is equal or lower to initial liquidity (in the popular pair):
ex: LP: added 100shitcoin/1eth , removed 120shitcoin/0.7eth
This indicates that the project did not get the attention it wanted, and they decided to cut their losses.

2- Presale that never creates a LP and vanishes: Another typical scam, creating and advertising a presale of tokens, sending you the tokens, then removing the site and social media, and leaving you with worthless tokens.

3- Wallets distribution and dumping: Another tactic used by crypto scammers is distributing a big percentage of the token total supply to many wallets operated by deployer. Before creating liquidity pool, the deployer distribute to his own wallets (can be up to a 100 wallet), huge amounts of tokens, total usually is higher than 50% (even 80-90%). Then even if the scammer creates liquidity pool and locks it, he will dump these tokens on the buyers, rendering the token worthless and causing it to lose 90-99% of it's value.

4- Token Freezing: certain networks allow to have token freeze, buyers will be able to buy but will not be able to sell, and deployer dumps the tokens on the buyers.

5- Not sending the coins: This affects exchanges, mixers etc : when you do an exchange or mix, and never get your coins back, especially if there's no indication why, then you have been scammed.




Less obvious red flags:

1- Initial dumping by deployer or team: If the deployer or team dumps in big quantities it means they are after the money and nothing else. Added info: such a behaviour breaks the project, and as a result it can never recover.

2- A meme coin, that keeps telling the investors that it would be among the top 100 coins.

3- Any token or coin that promises 10-100x when it's market cap does not allow it. Example: a coin that have a market cap of $100 million, can not promise 100x, because that would mean it will have a market cap of 10 billion.

4- Any coin or token , inflating telegram, twitter and social media followers with fake bots > to create FOMO  > thus cheating investors.

5- Projects asking their communities to vote on a decision, then choosing the more greedy decision without regard to the vote. Or trying to fake the vote with fake bots.

6- Projects employing market makers that clearly manipulate the market.

[dkbit98]

We should have a basic Scam Accusations format template and example for reporting any project.
There is something similar used in bitcointalk forum, but we can make some modifications to fit more for Altcoinstalks forum and 2024 year.

This was proposed in 2013 by escrow.ms and adopted by community in bitcointalk forum:

Code: [Select]

[b][color=black]What happened:: [/color][/b]

[b][color=black]Scammers Profile Link: [/color][/b]

[b][color=black]Reference Link: [/color][/b]
[b][color=black]Amount Scammed: [/color][/b]
[b][color=black]Payment Method: [/color][/b]
[b][color=black]Proof of Payment: [/color][/b]
[b][color=black]PM/Chat Logs: [/color][/b]
[b][color=black]Additional Notes: [/color][/b]https://bitcointalk.org/index.php?topic=260073.0

[admin]

We should have a basic Scam Accusations format template and example for reporting any project.
There is something similar used in bitcointalk forum, but we can make some modifications to fit more for Altcoinstalks forum and 2024 year.

This was proposed in 2013 by escrow.ms and adopted by community in bitcointalk forum:

Code: [Select]

[b][color=black]What happened:: [/color][/b]

[b][color=black]Scammers Profile Link: [/color][/b]

[b][color=black]Reference Link: [/color][/b]
[b][color=black]Amount Scammed: [/color][/b]
[b][color=black]Payment Method: [/color][/b]
[b][color=black]Proof of Payment: [/color][/b]
[b][color=black]PM/Chat Logs: [/color][/b]
[b][color=black]Additional Notes: [/color][/b]https://bitcointalk.org/index.php?topic=260073.0

that's good, i guess these apply for individual scammers not "projects" scams.
Any other flags you would think of when it comes to projects ?

[Agbe]

that's good, i guess these apply for individual scammers not "projects" scams.
Any other flags you would think of when it comes to projects ?

I don't buy the idea of modify the features of bitcointalk because these are two different forum. And the way this forum is operating is good and there is no superiority like BTT. And anything that is good for the forum and it is the benefit of the forum and not for few then it is good. And the temple of the scam accusation which the admin has said is good because nobody will come here and create fake accusation thread. And I don't support using the temple of bitcointalk.

[dkbit98]

that's good, i guess these apply for individual scammers not "projects" scams.
Any other flags you would think of when it comes to projects ?

That scam accusation can be applied to anything, and it is applied not only for individual scammer, but in case of project scams some information is removed.
There are many red flags everyone can notice for new crypto projects, but it makes it easier if they have account registered in forum.
Most important part for any scam accusation should be this:

Code: [Select]

[b][color=black]What happened:: [/color][/b]

[b][color=black]Scammers Profile Link: [/color][/b]

[b][color=black]Amount Scammed: [/color][/b]


[ehloom]

It’s great to see a clear set of guidelines for identifying scams in the crypto world. Crypto can be a risky space, and having a structured approach to spot red flags is crucial. I agree that the most common warning signs like rug pulls, presales that vanish, and suspicious wallet distributions are key indicators to watch out for.

As for the conversation on whether to adapt templates from other forums, I think it makes sense to have a tailored format for Altcoinstalks. Each community has its own dynamics, and what works on Bitcointalk might not fit perfectly here. A specific format that reflects the unique characteristics of Altcoinstalks could help maintain the forum’s identity and standards.

I also appreciate the emphasis on distinguishing between individual scams and larger project frauds. It’s often not easy to tell, and a well-defined format could make it clearer for everyone, from beginners to experienced members. This would also help in preventing false accusations, which could damage legitimate projects and individual reputations alike. It’s all about finding a balance between caution and fairness! For a comprehensive list of red flags, you might find this guide on identifying crypto scams helpful.