INSUBCONTINENT EXCLUSIVE:
Investors need to be careful before putting their money in crypto projectsThe ballooning cryptocurrency market has attracted huge interest
The rise is so promising that new coins are being added almost every month
There are now more than 16,000 crypto coins traded, according to CoinMarketCap, a market research agency
But this rapid expansion is proving to be a cause of concern as there are many coins that are launched with the sole aim of riding an
existing trend or euphoria and cheat or scam investors of their money
In such a situation, how do we differentiate between the legitimate coins and the illegitimate ones?To an amateur investor, most coins
appear similar with their respective promise of returns and the function they represent
An example of a coin-related scam in the industry was the Squid Game token
Launched following the massive popularity of the Netflix show of the same name, it gained value and lost it with lightning speed
Here are some of them:1.Verify the projectAs a thumb rule, always look for the project's website and its whitepaper
It is one of the most trusted ways to ensure the crypto project is legitimate
Every project releases a whitepaper, explaining the objective, idea and design of the underlying blockchain and other technologies behind
The whitepaper can be found on the project's website
Read it and verify the details from other sources.2.Promise of unrealistic returnsIf a project promises high short-term returns, hold back
Any investment takes time to mature
Given the volatile nature of the crypto industry, it is always prudent to invest for the long term
A short-term price fluctuation is acceptable, but extreme volatility should be read as a warning
Also, scammers use phishing emails and social media handles to reach out to novice investors
Be careful with them.3.Follow URLScammers typically use website URLs that appear similar to the original
foundation backing it etc
Thorough research is always a useful tool against scams
If a project's creators are anonymous, it is a red flag.5.Fake endorsementsScammers often try to add legitimacy by adding the names of
influential people and celebrities to their project without approval
They understand that people place trust in known voices and try to use this as a trick to cheat gullible investors
While some tech entrepreneurs and businesspersons have supported crypto, they have endorsed only a limited number of coins
