The term “scam” is commonly understood as a scam or a scam. Unlike bankruptcy, a scam is a planned action for which management was preparing. Similar situations occur if a company or project has failed to fulfill its obligations to investors.
In the field of cryptocurrencies, the concept of “scam” is often applied to various dubious crypto projects, many cryptocurrencies, and, of course, ICOs. If the project does not bring anything useful, it is called a scam.
There is simply no universal instruction on how to recognize scams. The fact is that a team of such projects creates the appearance of work until the last moment and tries to show that everything is fine until the end.
There are times when projects disappear quickly, literally overnight. In this case, accounts on forums and social networks are deleted, all contacts with developers disappear, and the site is closed.
However, often the team will make the appearance of work. Remember that most scams are ICOs. The creators of the project collect funds and then do whatever they want since the ICO does not provide for the possibility of control by investors.
And so it happens – the developers collect funds and disappear into nowhere, however, the real work on the project is not carried out, only its appearance is created. Often this should be enough for the project to exist without the appearance of official scam charges. We work, we try, and everything will be! And when everything will be – another question.
The first signs that may indicate a scam are unusually large bonuses during the sale of tokens at the ICO, statements about the reorganization of the company, information about the freezing of payments and tokens, reports of technical problems, disagreements, and scandals in the project, as well as various complaints about problems legal nature.
Invest wisely – save your money!