How To Spot A Scam Project In Crypto

in blog •  2 days ago 

So if you wanna make sure that a project's not a scam, you have to make sure it has good liquidity. And at the same time, if you wanna make sure a project pumps really fast, you wanna make sure it doesn't have that much liquidity.

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The more liquidity it has, the safer it is, and the slower it moves up in price. If you have a sweet spot, you can have a small amount of liquidity, and when a big whale buys in, he'll skyrocket the price.

That sweet spot is everything. And this is what brings, essentially, safety to the meme coins you're buying, because a lot of these meme coins are anonymous.

Just think about it for a second. The way I gauge safety in legit coin projects like altcoins and infrastructure and DeFi, the way I gauge that safety is looking at the team.

I look into the team, see how much experience they have. In meme coins, there is no team, so you essentially have to base that by something else.

How do you know if a coin is safe?

Not market cap. You could have a coin with a massive market cap but a very small amount of liquidity that's basically a scam.

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