I just realized that many people in the community still do not fully understand what scam means, especially the new forms of fraud in the crypto market. So today, I want to share some experiences and knowledge I have accumulated.

Simply put, what does scam mean? It is the act of deceiving to seize someone else's assets, especially cryptocurrencies. Those who do this are called scammers, and if caught, they will face penalties. But the tricky part is that nowadays, scam methods are becoming more sophisticated and complex than before. I have seen the scale of scams spreading across many countries, affecting millions of victims.

One issue is that when being scammed, many people do not realize they are falling into a trap. Some even know it’s a scam but still participate for quick profits. I have seen Ponzi-style projects, where the money from new investors pays earlier investors, and the earlier you join, the more profit you get. But when no new participants join, the entire model collapses, and investors suffer heavy losses.

There are two common scam types I want to mention. The first is Scam ICO, which exploded in 2017. Scammers create a new cryptocurrency project, promote it, hire KOLs to advertise and attract the community. Then they issue tokens via ICO to raise funds. Once they have collected a large amount of money, they abandon the project, take the funds, and disappear. Signs of this type include projects without real solutions, teams hiding their identities or having scammed before, poorly made websites/whitepapers, and unclear roadmaps.

The second is Liquidity Withdrawal Scam, often happening on DEX platforms. Initially, the project is built quite professionally, then they issue tokens and list them on Uniswap, PancakeSwap, Sushiswap, or other pools. But warning signs include low liquidity, floating liquidity, promising high APY. Some projects even lock buy/sell functions or hack themselves to dump large amounts of coins.

I think the best way to avoid scams is to research thoroughly before investing. Ask what problem the project solves? Does it really need blockchain? How is the community? What about tokenomics? Luckily, nowadays, there are many websites and tools to help check projects. You can verify smart contracts to see if holders and founders show any suspicious signs. Importantly, when connecting your wallet to a website, make sure that site is reputable and safe. After you no longer need it, remember to revoke permissions to prevent misuse.

In summary, understanding what scam means and its forms will help you better protect your assets. I hope these shared tips are helpful to you all. If you have any questions, just leave a comment below the post so we can discuss!