How to check tokens for scam
The TokenScope analysts team is constantly receiving clients’ inquiries for checking tokens (coins) for scams before making any investments. In today's post let's take a look at one of the popular schemes used by scammers. This knowledge can prevent you from falling for the tricks of scammers and save your money.
- Scammers can create on defi-exchange “Pancakeswap.finance” a scam coin that has external (spelling) similarity with a promoted coin or coin waiting to be listed on the exchange.
Examples of such coins are:
The scam coin is widely promoted right after the issuance: a website of the coin is created and information is distributed via Telegram in different channels. The scammers use both ways of promotion, their own channels and pay for advertising on popular resources on investing and cryptocurrencies. The text of scammers' message ads usually says that there is an interesting new coin whose price has increased for several times, that it is promising and many people managed to earn on it and many factors point to a significant increase of its price in the nearest future.
The "Pumping" of the coin for its price increase. The scammers are even buying thier own token on the exchange and wait for investors to join as the growth of the coin price looks promising. Investors who bought a scam coin are trying to take profits and withdraw their funds, but the cryptocurrency exchange reports that it is impossible due to problems with the token. Meanwhile all the profit of the scam contract, generated this way is withdrawn by the scam-creator. TokenScope Team strongly recommends to be careful when investing in unknown tokens and to check them for scams before investing.
Have a safe and successful cryptocurrency investments!