Meme Coins
These meme coins may not essentially be fake coins with fake contracts. However, they usually promise token holders with exponential returns in an unrealistically short period of time. ...
Rug Pulls
Rug Pulls are common on decentralized exchanges like Uniswap or PancakeSwap where the Ethereum (ETH) or Binance Smart Chain (BNB) tokens that are on liquidity pools are suddenly pulled o...
Dump Airdrops
In a dump airdrop, the goal for the developers is to generate short-term buzz about a token so that people will be eager to buy it when it hits exchanges. The developers quickly sell...
Check for Smart Contract Audits
Genuine projects will and always have their smart contracts and code audited by professionals to ensure there are no bugs that could cause users harm. By doing so, ...
Verify Using Trusted Sources
Verify a token by going via a trusted source, such as the CoinMarketCap 2.6k or CoinGecko 1.2k crypto tracking websites. You can search for the token, on these sites a...
Analyze Trade Volume or Liquidity
Once a token is already actively being traded, then value is determined and the app can show it properly. If there is low volume or liquidity 314 on the exchange ...
Review the Project
Check the official website of the project and look for details like clear roadmaps, the team behind it and their social media accounts. Legit projects usually demonstrate social...
Example of Token Scams
Imitation Tokens
The process of listing a token on a Decentralized Exchange (DEX) like Uniswap 1.2k or PancakeSwap 1.5k or is open to everyone. Scammers will generate a tok...
Anyone can easily mint a token.
It is the user’s responsibility to know the tokens they are investing in. The Trust Wallet app cannot really tell if a project is legit unless it has been manually ...
Fake Token Scams
Decentralized finance (DeFi) has been getting the attention of a lot of new users that wants to join the cryptocurrency space. Unfortunately, this rapid growth has also attracted ...