The Cryptocurrency world is on expansion with many projects exploding into internet that also gives space to smart criminals to act and execute dangerous smart contracts investments scams.
This ones at prior could be very attractive to investors whom will be promised huge returns (red flag stands) with just a tiny investment on the smart contract, the scammers will use the best networks to promote their "infamous" business to attract more creditors and somehow that mainnet will help them to legitimate the business.
Of course isn't easy to call the attention of people who want to invest and call them to attention about mostly because this ones are dreaming with instant and easy investments business, they don't research and use the theme "if sounds to good to be true is oblivious a scam".
So how to detect this smart contracts protocols!
well, the first thing that can be flagged in the scam smart contracts is the investment fee to participate on them, and in order to keep earning you need to invite other into the cycled positions, meaning you only earns when you invite more. The second flag is the promise on huge returns in absolutely few space of time (like forsage.io who just promise people to invest a little investment and claim that users could make 1ETH in just couple of days), this scams most act like a ponzi scheme where each one of the participants need to deposit in order to get paid and if that order to maintain the business alive fail the smart contract is domed and people lose their money.
Acting as Pyramid the ones on Top (the smart contract owners, and their direct collaborators) will always make money from people's deposits but the ones who keep coming to support the scammers network won't be able to earn more than they deposit, obliviously there are exceptions where some earn a lot before it shutdown with people funds but the large cast of investors ending up losing their money into this smart contract investments scams.
To avoid being part of the victims is strongly advised to make your own research before interaction with this kind of investments (DYOR) and stay out of trouble.
Many still remember the PlusToken ponzi scheme, who defrauded more than $4 billions in people's funds!! That was one of the largest scams online which people believed that could earn more investing their assets on it, and ended up being ripped of, despite not being a total smart contract investment scam was one who caused victims that until today are crying about the money lost, so take care of your finances.
Make research before entering on any dubious business, protect your money.
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