This is an automated archive made by the Lemmit Bot.

The original was posted on /r/cryptocurrency by /u/benjamari214 on 2023-08-11 13:45:03.

As with any learning method, the more data you have, the easier commonalities become to spot. With that in mind, and with a look to inform before the next bull run starts, here are 7 common traits I’ve collated that scams seem to share:

1.  Anonymity: Scam projects often have anonymous or intentionally secretive founders, making it difficult to contact them or hold them accountable.

2.  Unrealistic Promises: They make exaggerated claims about potential returns, promising quick and unrealistic profits.

3.  Lack of Transparency: Scam projects avoid providing transparent information about their team, technology, or roadmap.

4.  Pressure to Invest: This is a big one.  They create a sense of urgency, pressuring users to invest immediately without proper research.

5.  No Real Use Case: Scam projects lack a genuine use case or utility for their token.

6.  Copycat Whitepapers: Some scams plagiarize whitepapers from legitimate projects, hoping to deceive investors.

7.  Overwhelming Hype: Scam projects rely heavily on aggressive marketing and hype to attract investors.

As we are all aware (hopefully), scams can come in all shapes and sizes. From small scams we’ve never heard of to big multi billion dollar scams, it doesn’t matter the size or scope of the project - if it looks like a scam, it’s probably a scam.

I find it helpful to compare these traits to Bitcoin, in order to get a frame of reference for what a healthy project should look like.

Traits of Bitcoin:

1.  Transparent Founder: Bitcoin’s creator, ‘Satoshi Nakamoto’, introduced the technology and remained transparent and contactable initially, before moving on.

2.  Realistic Expectations: Bitcoin’s whitepaper and early discussions emphasized its potential as a decentralized digital currency, not a get-rich-quick scheme.  Any price movements since it’s inception are a function of adoption and not of its use case.

3.  Open Source and Transparency: Bitcoin’s source code is open and accessible, allowing anyone to review and contribute to its development.

4.  No Urgency: Bitcoin’s adoption has grown organically over time, without the need for aggressive marketing tactics.

5.  Genuine Use Case: Bitcoin serves as a decentralized digital currency and a store of value, with real-world use cases.

6.  Originality: Bitcoin’s whitepaper presented an innovative solution to the double-spending problem, showcasing originality.

7.  Community-Driven Growth: Bitcoin’s growth is fueled by its strong community and grassroots adoption, rather than hyped marketing.

Hopefully this helps people - I’m expecting this to be more useful to those who are new to the space, but perhaps this can help veterans shift their perspective back to where it should be after the pain of this bear market.