Recently, the atmosphere in the circle has been a bit off, with all kinds of Ponzi schemes and scam organizations starting to stir. As someone who has been in this space for many years, I want to share some of the common tricks I've seen firsthand, as a reminder to retail investors.

Honestly, these scams may look diverse on the surface, but their underlying logic is actually the same—using the money from later entrants to pay the returns to earlier investors. Once the new capital can't keep up with the interest payments and withdrawals, the entire scheme will collapse instantly.

First, let's talk about Ponzi schemes. Essentially, it's a game of "who can run faster." The operator will first create an observation period, during which they constantly show you screenshots of others successfully withdrawing (which are actually fake data generated behind the scenes). Then they deceive you with a "split" trick—like splitting one coin into two, halving the price, making your assets look doubled. In reality, it's just a numbers game. When the new funds can't keep up with the daily interest and withdrawal demands, the operator will simply shut down the network and disappear. This method is still evolving, with endless variations like mining pools.

Next, there's the pyramid token. This is basically traditional multi-level marketing wrapped in blockchain. You have to download a specific app and enter a referral code to join, then get tricked into buying "virtual mining machines." These tokens are not listed on mainstream exchanges, and their prices are entirely controlled by the behind-the-scenes manipulators. You see your assets rising daily, but you just can't withdraw, which is the cruelest part. I've seen many pyramid schemes disguised as meme coins active on various platforms, and those scam groups that had been dormant for years are now reactivating.

Community tokens sound appealing, but they can easily turn into "local dog coins." Operators will hire people to flood Twitter and Telegram, creating the illusion that "this is the next Dogecoin." The most ruthless tactic is "liquidity pool withdrawal"—they add liquidity on decentralized exchanges to lure you into swapping ETH or USDT for their "air coins." When the pool accumulates enough real funds, the operator will suddenly withdraw all liquidity, leaving your tokens worthless and unsellable. There's also the so-called "Pixiu coin," which you can buy but can't sell; the smart contract explicitly restricts ordinary users from selling.

Ponzi schemes are even more straightforward. They are often packaged as "arbitrage robots," "quantitative trading," or "deep-sea mining." Initially, they pay out bonuses on time and even support withdrawals at any moment, lulling you into complacency. But once you've invested your entire savings, they tend to vanish suddenly during holidays or after large deposits.

How to avoid falling into these traps? I suggest asking yourself three critical questions. First, where does the money come from? If it doesn't come from actual products or services but from the capital of later investors, it's a Ponzi. Second, why are they looking for me? If you can earn 1% daily just by lying around, why would the operator go to a bank for a loan and share the profits with you? Third, is there an exit threshold? Restrictions on withdrawals, withdrawal reviews, requiring new recruits to withdraw, or high transaction fees—if any of these exist, run fast.

On the technical side, you can check the contract on BscScan or Etherscan. If the contract owner can mint tokens at will or change transfer logic, that's a very dangerous sign. Also, see if the top 10 addresses hold over 90% of the supply—that's a typical sign of heavy control. Check whether the liquidity pools are locked on third-party platforms; if not, the operator can withdraw at any time and run away.

Remember these key points to block 99% of scams: anything that requires "referral" to sustain returns is a scam. Anything promising "high returns with zero risk" is a scam. Don't trust strangers promising to make you rich, no matter how friendly they seem. Anything that paints a big picture and urges you to buy coins is a scam.

Real community tokens are fundamentally different from pyramid schemes, Ponzi schemes, and capital pools. Good community tokens will have credible core team members—look for experienced industry professionals or top 100 traders involved. These details can reveal many issues.