Can you spot a cryptocurrency scam ?

token, scam

If you hold any cryptocurrencies, you have certainly seen or even encountered an attempt of a scam. It’s interesting how such scams are often elaborate so that you can’t spot them at first glance. Or they directly target newbies who don’t have that much experience yet. Can you spot potential scams? Let’s take a look.

3 signs of scam

Scams can be identified by lookin closer at these details:

1. Genuine people behind the project

With many scam platforms, you won’t find a single photo of the person behind it or the founders hide behind a nickname. However, if the owners aren’t willing to show themselves, you can assume they don’t want to be publicly connected with a scam project. Founders of Platon Life, Daniel and Julia Tanner, are publicly known and stand behind their vision and project with their name.

2. Strong partners

If you find ties to a strong and well known company, you can certainly feel safer when investing in a project. Credibility should always be the first priority. With Platon Life, you will find links to trusted companies such as Microsoft or Broadcom. Trustworthy companies don’t partner with just anyone.

3. Refunds and token use

A Ponzi scheme is where investors entrust the scammer with their money, but such schemes work only until the inflow of investors does not run out. They cannot work if investors ask for their money back. If the only use of the tokens is for holding them (staking) and it is not possible to purchase anything for them or use them for trading on public crypto exchanes, the possibility of a scam project is higher. With PlatonCoin it is possible to use the coins besides staking also for trading, purchasing vouchers or sending trasactions and there are further projects in development.

Conclusion

These were the most obvious and important signs of fraud that you should always investigate before investing in any crypto project. We hope you avoid all crypto scams and you won’t have to deal with losing money. If you would like more information, please feel free to contact us.

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Source: medium.com

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