👾 [Analysis] Most common crypto scams and how to avoid them – Valore Initiative

Types of scams

1. Fake ICOs
2. Social media giveaway scams
3. Cloned websites
4. Ad scams
5. DNS hacks
6. Email scams
7. Fake support team
8. Fake exchanges and apps
9. Cloud mining scams
10. Ponzi, pyramid, and multi-level scams
11. Malware and crypto mining
12. Fake pools and OTC scams
13. Pump and dumps
14. Phone hacks

Typical red flags

1. Promise astronomical gains
2. You must invite more users
3. They ask for your private key
4. Scam history
5. Untraceable project team

How to evaluate the legitimacy of ICOs

1. Reputation in the industry (Twitter, LinkedIn, press, etc.)
2. Activity (social media, GitHub, etc.)
3. Technology (does the project need a blockchain?)
4. History (track record of the company with deadlines & integrity)