How to verify the crypto project well?
Today you will learn more about how to verify projects for scam on which we can lose all our savings. And there are many ways to check it, as well as types of projects of this type.
A message that has become a classic and at the same time a memoir in the backstage of the Polish Internet, its message is understandable to everyone. How does it relate to the reality of the cryptic industry? More than everyone seems to think, a significant part of projects based on the Ponzi scheme. If something is too attractive than common sense tells us, it is most likely a fraud. The standard type of message is: “You put 15,000 in our super program, you’ll get a return on investment of 50% a month. No one offers as much as us! He’s already trusted us… (enter the name of any celebrity here).” Then you’ll find out that when you invite your friends, they’ll also get 50% and you’ll earn 50% of what they put in. Sounds like a dream. Unfortunately, after a few weeks/months it turns out that the mysterious project disappears. Despite attempts to withdraw funds much earlier, it never happened, and we were assured, for example, of system improvements, wallet migration or other “maintenance” work.
Check out the whitepaper that is the basis of every cryptographic project! Much of these documents in scams are inconsistent logically, and it’s very easy to find out after reading them that something is wrong. The red light should be on especially if any, the assumptions have no support or are empty phrases without a detailed description of how the authors will reach them. An additional aspect that should draw our attention should be any plagiarism in the whitepaper or on the website and the lack of coherence between the media presented in a given place.
Verify the company behind the project, nowadays practically all countries provide public records showing who owns a given company. Any uncertainties and information about the origin of the company or its official managers should be brought to your attention.
Not all gold that shines?
Most of the people who recommend this type of projects live “on the level”, a profile photo of an elegant shirt, somewhere among the pictures luxury cars. Reports from holidays in 5-star hotels and other goods that wealthy people “and soon you too” can afford. The truth can be very painful, cars are most frequently rented or borrowed by someone higher in the hierarchy, while for holidays can afford only these people who stand on top of such a pyramid.
So what do you “invest” in?
Invest in a verified project with working developers you can verify through e.g. github. Looking at the project website check if the people behind it exist in reality and if their experience is confirmed. More than once the projects that are scamming the money had a team full of bankers and people with alleged experience of many directors of major global corporations, unfortunately only on the project website. After a simple verification consisting of entering the name and surname, it turned out that there is no information about these people, which simply means that those on the project’s side are the authors of the scam.
Invest in what you understand and as much as you can lose. Verify the project on your own and not with the help of the person who recommends it, most often they will have the answer to every question. The cryptographic financial market industry is growing rapidly, waiting for regulations. Whenever the society starts to accept something and to assimilate it, there is a place for people who want to take advantage of our naivety, greed and ignorance, while remaining unpunished. Nothing can replace common sense!