The recent crypto prosperity has attracted many new users into the blockchain world. However, it also creates a great chance for scam projects.
There are so many scam projects in the blockchain industry. One of blockchain’s well-known nature is decentralized. Everything has two sides. Due to its decentralized nature, users even can’t find the scam project’s company/team to report for compensation. By promising an extremely high return, these scams can “catch” many new users. They pretend themselves as convincing projects: prepare an “official website”, a full set of social media channels, a telegram group, etc. You may be attracted by the high return and consider investing.
BUT wait! Do a few more steps below to lower down the risk. We cannot eliminate scams 100% but we can always do a little bit more to try to protect ourselves.
How to figure out if a project is reliable and avoid this kind of scam?
Here are 3 tips you should keep in mind to protect yourself from loss.
Check a project’s category on dapp.com before you invest in it.
It’s crucial to identify a project by knowing its category. Dapp.com specifically set a category called “High-risk” to remind our users of a widely acknowledged yet always forgotten lesson: High return comes with high risk.
So before you try a new dapp, even though it looks like a financial or a game dapp, search it on dapp.com first. For example, you can search “bank of tron”. Each project is shown in the search result together with its category.
If you find a project is marked as “High-risk”, you should be cautious.
Or you can view all the high-risk dapps on dapp.com via this link: https://www.dapp.com/dapps/high-risk.
Track a project’s on-chain data.
If a dapp’s users, transactions, and volume experience a sudden drop sharply, you can regard the drop as an alert: It might be a scam!
Take a “delisted” project called easypool as an example:
We’ve alerted our users in April, when we noticed that, the users dropped from 68 to 0, the transactions dropped from 220 to 0, and the volume dropped from $3.75K to $0.
So if you want to try a dapp, it’s important to search on dapp.com, and check its real-time data first.
Turn to the community for help - What others have experienced will remind you of the potential risks.
Still not sure if this project is trustworthy? Check the review section on its product detail page on dapp.com.
Our community is helpful and warm-hearted. Many of our users have left comments to share good user experiences or warn other users of the risk.
Above are the examples of our users helping each other by writing reviews.
So remember to read reviews carefully. And if you ever find something suspicious about a project, or you are cheated by a scam, please also kindly write a review to alert others. Your words might save a lot of people from traps.
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