Quick Ways to find Coin Scam Easily

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Cryptocurrency became a hot topic at the end of 2017. Many people want to invest in cryptocurrencies like Bitcoin, but they (ordinary people) are afraid because cryptocurrency is just a scam. It is very difficult to detect which are real coins or coin scams, but I will tell you tips for detecting coin scams and ICO scams.

How to know Coin Scam 

1. Team

A company can run and develop with a reliable team. The success of a coin is not young, a lot will depend on experience, expertise and teamwork within the team. This "team" is one of the benchmarks for investors to judge the level of success of a coin, however, there are also many ordinary people who don't pay attention to the team part, and only direct their focus to the idea and hype of a coin. There are several ICO coin companies, such as Bitconnect and AIOS that have ghost teams. 

The ghost team is not a team consisting of ghosts, but a ghost team is a company that doesn't exist, or, a little information about the founder or his team, can also be interpreted as a fake team. This causes the possibility that they will run away with your money, because no one knows who is behind the fraud.

There are also several ways that ICOs or coins deceive investors, these coins use fake teams, one example is Fujinto coin, this coin uses other people's identities for its team, it can also be called "identity theft", photos of these people can be taken without permission by the owner via facebook etc. And put fake names and fake linkedin profiles, giving the impression that they are the “real team”.

(Fujinto Coin uses other people's pictures for their “Team Page”, the names in these photos are fake names)

the company uses fake images and profiles obtained on Google. These teams also have CVs that can be considered very good, unfortunately, this is just a hoax.

Interested parties must also check each team member, interested parties must conduct deeper research on certain people whether there is a possibility that the identity of the team really exists and not only appear for ICO or seeking funds. Investors should also know if the team is real, whether they have been involved in a Ponzi scheme. It's easy to find out if the team really exists, the way is to use Google.

1. You can Google the name that is listed on the team, in general, you will see their Facebook, Instagram and LinkedIn. Check one by one their social media, pictures, history, education and work. Is it real? Has it been a long time or is it just made for “ICO” only? Check their "connections", "Followers", or "Friends" list again, are their followers, friends, etc. fake too?
2. Use Google Images, right click and "search Google for image", usually the image will be connected to their social media.
3. Write "name + scam", don't use Indonesian because many coins and this ICO are international. If they have a history of cheating, leave the Coin immediately because the investment now has a high risk value.

2. Roadmap/Target

On the Coin or ICO website a roadmap will be listed. Roadmap is a timetable in which the company will strive to complete their journey targets. The roadmap will usually announce the targets and missions to be carried out usually per quarter and will notify interested parties by:

1. Product in progress.
2. Product to be issued.
3. Pre-sale and sale to the public.

 

Investors should also be wary of roadmaps that are "too good to be true". For example: they promise that 100% of their ICO will be the second Bitcoin and promise lots of prospects or high ROI (Return on Investment). 

Most companies that express sentences like this are usually fake companies like for example Bitconnect which can only give sweet promises and sell dreams, this is because the value of a company cannot be measured based on their expectations and only the market can determine whether a company is entitled have that value. 

While companies may "market make" or term "fry" the price of their own coins, this doesn't happen often and it's unhealthy to expect something that "isn't certain" to happen.

3. Whitepaper

Every old or new coin must have a whitepaper. Why? Because the whitepaper will notify investors about the coin in detail - starting from the mission, the team, to the technology to be used, the whitepaper can also be seen as a "proposal" of the coin for an ICO to investors.

Fake companies usually either don't have Whitepapers because they are not professional enough to make regular Whitepapers, or the company cannot describe their company, vision, mission and ideas in a reasonable way, companies that usually promise sweet dreams find it difficult to explain in detail and the logic of how they will achieve their “target”, remembering that they can also copy whitepapers from companies that are already running.

In the absence of whitepapers, it is necessary to reconsider whether the company really intends to carry out their own ideas, visions because whitepapers are one of the most important things for investors in making investment decisions, whitepapers do not only provide information about the entire company, however, it should be noted that the content and quality of the Whitepaper can also be a measure of the team's professionalism in carrying out a business.

Do you want to give your money to a group of people who can't make a proper and logical White Paper for investors?

4. Multi-Level Marketing (MLM)

MLM is a pyramid scheme where sales will get money from selling products and also recruiting members and also the sales results of these members. They will get more compensation from recruiting members than selling products.

Many countries have legalized the MLM system, one of which is Indonesia. Why? Because most companies that use the MLM system cheat their members. Same with coins, coins that use this scheme will most likely cheat you.

Examples of coins that use this system are: Onecoin, Centurion Coin and many other coins, usually these coins use a purchase system through bank transfers or receiving rupiah, even though they say that they are engaged in "Blockchain technology" but they do not accept cryptocurrency and only in rupiah. Need to be suspicious of the authenticity of the coin,

Summary

There are some unique features of cryptocurrencies such as decentralization, full transparency via a public ledger, and open source code that anyone can view. Fraud and Ponzi schemes do not share these common characteristics and are usually centralized and opaque.

The best way to avoid falling into various ponzi schemes and scams is to identify the common characteristics as listed above. Even more important is having knowledge and understanding of how cryptocurrencies work and the technology that underpins their business. 

In every investment there is definitely a Risk/Reward, but this risk can be minimized with sufficient information and research. Remember to always do your own research and don't just hear word of mouth.

Hopefully, some of these methods can help you better understand how to invest properly in the world of Crypto.