What is the scam-project and how to recognize it

“Scam” is synonymous with the words “fraud” or cheating”.

Why do investors care about this issue?

Everything is quite prosaic — the field of cryptocurrencies and investment in ICO is characterized by high risks. Perhaps some of our investors are faced with this phenomenon, some have become victims of fraud, and someone first hears the word.

You can determine is the project scam or not by the use of several methods:

1. The method of the four “T”. You will need to evaluate the project team, economics and marketing, technology and the essence of the token. Thus, four “T” are obtained — Team, Tech, Theme, Token.

2. The method developed by blockchain specialist Alex Kontegna. Its essence boils down to the presence of unreasonable internal tokens, which indicates that the submitted project is a scam. This method is shown in the picture below.

3. There is also a more complex and time-consuming method, but we are not in a hurry when it comes to investing our money.

So, the first step is to draw up a risk scale of 100 penalty points. Select templates based on previously analyzed scam-projects. Evaluating the project by criteria, you can choose any number of convenient indicators. For example, let’s imagine that we have several indicators for which we charge a different number of penalty points to the project.

For example, for the factor “lack of history in social networks of participants” — we have to add 10 points, if the history of activity in social networks is traced, then we put 0. Now consider the factor of “mismatch locations in WP and on the map” — add another 10 points. The next factor “the absence of other successful projects” — plus 7 points and so on.

Having completed the scoring, we analyze the results:

If the project has collected up to 33 points — this startup deserves respect, if from 33 to 66 — it is worth to treat with suspicion, and to analyze other indicators, if the project scored from 66 to 100 points, then it is definitely scam. With such simple methods, by donating a few hours of free time, you save or increase your savings.

We wish you all successful investments!