I want to share with you all an issue that everyone involved in crypto needs to know about – what scam is and how to recognize it.

In the cryptocurrency market, the term "being scammed" is very familiar to investors. Basically, what is a scam? It’s simply fraudulent activity – scammers will try to seize your assets through various methods. The scale of these scams can extend across many countries with millions of potential victims.

I’ve seen many people fall into traps because they want to make quick profits. Some projects operate on a Ponzi scheme model – where the money from new investors pays earlier investors – so the earlier you join, the more benefits you get. But when new participants stop coming in, the system collapses and everyone suffers heavy losses.

There are several common types of scams you need to watch out for. First is Scam ICO – new cryptocurrency projects that are heavily promoted, even hiring KOLs to boost credibility, but after raising funds from investors, they disappear and abandon the project. Clear signs include: the project has no practical solution, the team is anonymous or inexperienced, the website/whitepaper is poorly prepared, and the roadmap is vague.

Second is liquidity withdrawal on DEXs. These projects initially build quite professionally, then issue tokens and list them on Uniswap, SushiSwap, PancakeSwap… But warning signs are low liquidity, liquidity can be withdrawn at any time, or promising unrealistic high APYs. Some projects even lock buy/sell functions or hack themselves to dump large amounts of coins.

So how to avoid? I advise you to research thoroughly before investing – check what problem the project solves, whether blockchain is really needed, how the community is, and the tokenomics. Currently, there are many tools to help verify smart contracts to see if holders and founders show suspicious signs. Importantly, when connecting your wallet to a website, make sure that site is reputable and secure. After completing your transaction, remember to revoke permissions to prevent misuse.

Basically, scams are malicious individuals trying to deceive you, but if you are careful and do thorough checks, you can fully protect your assets. Wishing you safe investing!