Thief stealing crypto.

What is a crypto "exit-scam" and how to detect them.

By 0xBatam | Batam Posts | 13 Jan 2024


An exit-scam is a scam that consists of disappearing with the funds of investors or traders after launching a project or a platform of cryptocurrencies. The scammers behind this type of fraud usually promise high returns to investors, but close their website, their social networks and their communication channels without warning, this, is an exit-scam. If you invest in an exit-scam, all your investment will be resulting in complete loss, this is why you should really be aware of those.

 

To detect if a crypto is an exit-scam, you need to be vigilant and do thorough research before investing. Here are some signs that can alert you to the risk of an exit-scam:

  • The project or platform does not have a clear and detailed whitepaper or roadmap, these are usually found on their website, if they have one, verify it is not stolen from an other project...
  • The project or platform does not have a public or verifiable source code.
  • The project or platform does not have an identifiable or qualified team, do not trust pseudonyms on internet...
  • The project or platform does not have credible or verifiable partnerships, again, do a lot of researches about these partnerships if they mention any.
  • The project or platform does not have an active or engaged community or is entirely made of bots.
  • The project or platform is subject to complaints or reports from users or authorities, or there is evidence of market manipulation or false information. To check if the platform is subject to these, check their website on Trustpilot and do a lot of researches about them online.
  • The project or platform offers excessive or unrealistic incentives to investors, if this looks too 
  • The project or platform asks investors to lock their funds for a prolonged period, or imposes restrictive conditions to withdraw their funds.

To avoid an exit-scam project, you should only look at projects and crypto featured in the trusted crypto platforms such as Binance, Coinbase, etc...

These signs are not exhaustive or definitive, but they can help to assess the level of trust of a project or a platform of cryptocurrencies. It is recommended to always do your own research and not to invest more than what you can afford to lose.

 

 

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0xBatam
0xBatam

i am a Crypto Enthusiast, French IT Student to become Expert in Cybersecurity. From Toulouse, France.


Batam Posts
Batam Posts

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