How to verify: Typically, you can check a government database to confirm if a platform is licensed. How to verify: A real exchange would never reach out to potential customers like this, especially via social media. The company is known for its resistance to comply with regulatory policies, causing industry-wide suspicion. If it’s not, it may not be trustworthy. If a platform reaches out to you through social media, such as through a direct message on X, Discord or Telegram, you can be sure it’s a scam. What to watch for: Pushy sales tactics are a big red flag. For example, the CEO (www.pipihosa.com/2023/11/13/ftx-sues-bybit-to-claw-back-953m-in-misappropriated-funds/) of Tether (USDT) refuses to comply with the European Union’s Markets in Crypto-Assets (MiCA) framework.
Fake crypto investment platforms are a common scam method, masquerading as useful services for crypto traders. These tips will teach you how to avoid crypto scams. Before signing up for any crypto investment platform, it’s essential to learn the telltale signs of a scam. Did you know? The FTC hosts a crypto scam detection guide that allows you to view common crypto scams, sorted by company name, scam type and other keywords. How to verify if a crypto investment platform is legitimate. This article will detail what to watch out for.
Crypto Trading In Us
Social media DMs are widespread crypto scam tactics. This is an easy sign to miss. Did you know? Some top crypto scams in 2024 were phishing attacks, rug pulls and fake airdrops. Even Uniswap has a support email with which to get in touch. Centralized entities should also have addresses of their offices, ones that you can cross-reference with Google Maps for legitimacy purposes. How to verify: If a crypto investment platform is missing any contact information, consider that a red flag. What to watch for: Crypto investment platforms with a real product, even decentralized ones, will have contact information.
What to watch for: Let’s be honest, most scammers won’t expect customers to read their project white paper. Watch for legitimate use cases. Don’t fall for buzzwords! What to watch for: Just as it’s super easy to fabricate an “our team” page, scammers can place fake endorsements all over their home page. Make sure the project solves a real problem, has a legitimate purpose and a realistic plan for the future. It’s probably something they threw together in ChatGPT or even plagiarized from a legitimate project. Did you know? Justin Sun, founder of Tron’s long-standing blockchain platform, has been accused of plagiarizing Ethereum’s white paper. How to verify: Read a project’s white paper in-depth.