Crypto Scams: A Dynamic List of ICO, IEO, IDO, and Other SCAM Projects

Here are the main types of crypto investment scams: 

• Scam ICOs, IEOs, and IDOs: Fraudulent teams behind newly launched crypto projects, take investors' money through different forms of token sales and fail to deliver on their promises.
• Pump-and-dump crypto schemes: Coordinated efforts to artificially inflate a token's price, only to sell off at a profit, leaving other investors at a loss.
• Meme coins scams: Due to increased popularity, ease of creation, and large trading volume, these tokens often are objects to pump-and-dump schemes, liquidity drain, whale manipulations, etc. 
• Crypto romance scams: This manipulative method also known as pig butchering crypto scam involves scammers regularly messaging victims through popular messengers or even dating apps to eventually convince them to send their cryptocurrency, often under the pretenses of a romantic relationship or false investment opportunities.
• Crypto malware and phishing: Cyberattacks or malicious mails aimed at stealing crypto recovery or seed phrases, which act as a backup key for a cryptocurrency wallet.

Identifying a crypto scam project can be challenging, so market participants need to recognize the common red flags when investing in crypto presales.

• Uncertainty: Avoid projects without a roadmap or whitepaper. Make sure the whitepaper is not AI-generated or copied from another crypto project.
• Unrealistic promises: Be cautious of projects that guarantee large profits with minimal risk. These promises often remain empty if there’s no clear plan on how to deliver on them. 
• Bad reputation: Avoid projects with teams that have a bad reputation in the crypto community. Research team members on networks like LinkedIn and check for previously launched projects by the group, as the absence of a crypto-related background could be a huge drawback. 
• Inactive community: A low engagement rate on the project's social media is another red flag to consider. Projects with a token, but without financial backing or support from the community often involved in pump-and-dump schemes. 
• Absence of Audits: Lack of third-party audits increases the risk of potential hacks or fraudulent activity. Always verify that reputable firms have audited the project's smart contracts to safeguard your investment.
• Poorly Designed Tokenomics: Sustainable tokenomics are crucial for a project's long-term success. Tokenomics with unclear structures, unfair distribution models, excessive supply, or lack of token utility can be major red flags. 

DYOR: To avoid falling for crypto investment scams, always remember to conduct your own research. Investigate the team behind the project, read the whitepaper, understand the tokenomics, and consider community engagement and feedback on social media. Ensure you invest in a project with a solid reputation and foundation. It’s important to find out if the project generates revenue, or if the team and investors can only profit by selling their tokens. 

Use trusted platforms: Avoid participating in the crypto presales on Telegram, WhatsApp, or other social media platforms that require transferring tokens directly to another wallet. Instead, opt for verified launchpads and trusted exchanges over third-party platforms.

When planning your investment, consider the Coinlaunch Trust Score, as we assess all risks related to the project or launchpad you plan to use to buy tokens. 

A rug pull is a type of crypto scam where developers abandon their project after withdrawing all funds from the liquidity pool, leaving investors with worthless tokens. It primarily occurs in the decentralized finance space, where an enormous number of new tokens are created daily without audits, often through decentralized exchanges like Uniswap or PancakeSwap.

After the listing on the DEX, scammers begin promoting their tokens, frequently using influencers and social media to generate excitement, under the promise of significant returns that drive FOMO among investors.

As investors start swapping their assets for the token, the fraudulent devs wait until the LP accumulates significant liquidity. Then, they pull out all the liquidity from the pool, causing the token’s value to plummet to zero.

How to detect potential rug pull tokens:

1. Skyrocketing Prices: Rug pull coins may be an object for pump-and-dump schemes, experiencing extreme price surges of 10x or more within just a few hours.
2. No Locked Liquidity: Legitimate projects usually lock their liquidity pools for a specific period, preventing developers from withdrawing funds immediately. The absence of a locked liquidity pool is a major red flag.
3. Lack of security measures: Security audits are a significant advantage, while a lack of transparency can often be a warning sign.

How to Avoid a Rug Pull:

1. Check for Locked Liquidity: Always verify if the project has locked liquidity in a pool, which can be an indicator of trustworthiness.
2. Research the Project: When researching a new coin created through pump.fun or a similar launchpad, it's crucial to gather as much information as possible. While many projects have social media profiles, it's important to verify that most of their followers are real individuals and not bots or fake accounts. For instance, you can use tools like Twitter Score to gain additional insights.
3. Use a rug pull checker: Utilize established checkers and tools to identify rug pulls and protect your assets when interacting with unverified protocols or contracts.

YES, Pump-and-dump schemes are illegal in the cryptocurrency space, however, strict regulations to prevent this type of fraudulent activity are still lacking. While the legal framework is still developing, this type of crypto scam is considered unethical and is often monitored by authorities. 

A pump-and-dump scheme involves artificially inflating the value of a token through coordinated marketing efforts by whales, large holders of cryptocurrencies. Once the value of the token has been driven up (pump), scammers sell off their holdings for a quick profit, leaving most investors with significant losses (dump).

Crypto pump-and-dump groups often create fake hype and buzz by promoting coins on social media, intentionally triggering a FOMO among potential investors. This fraudulent tactic is designed to increase the token's perceived value and attract unsuspecting participants with the lure of quick profits. 

Be aware of the pump-and-dump tokens and prefer investing in established projects.

As scammers continue to evolve and develop increasingly sophisticated schemes, identifying scam tokens in DeFi has become a challenge that investors must overcome. Here are five effective tools that you can use to identify scam tokens and safeguard your capital:

• DEXTools and DEX Screener allow users to check if a token has liquidity in a pool and whether it is locked. Users can also see which addresses hold the coin, along with the amount of tokens, and the percentage of the total circulating supply. Avoid tokens that have 1 to 5 addresses controlling the majority of the total supply.
• UNCX - an exceptional tool that allows you to quickly assess the liquidity status of any specific token pair. When a token creator locks their initial liquidity, it ensures that they cannot withdraw funds from the pool (preventing rug pulls), thereby, protecting your investment as a token holder.
• A Block Explorer (ex. etherscan, bscscan, etc.): serves as the definitive source for all information related to a token. It allows you to thoroughly explore the liquidity pool, access comprehensive transaction data, examine the token contract code, and identify the token creator's address, among other details. A great starting point is the "comments" section. Simply copy and paste the token contract address into the search box, then click on the "comments" tab. From there, you can investigate the contract creator's address to check for any liquidity that may have been removed from the pool. You’ll also find valuable insights about the initial liquidity provision and any subsequent liquidity changes.
• De.fi Scanner: a powerful tool that rapidly identifies vulnerabilities and unsafe practices in smart contracts. Simply enter the token's contract address, and you’ll receive a comprehensive audit result. Moreover, users can verify NFTs' safety, by also inputting contract addresses in the smart contract audit tool. The De.fi Scanner is indispensable for anyone looking forward to secure trading experiences. Its intuitive design is specifically crafted for newcomers in the decentralized crypto space.
• Token Sniffer: a great tool designed to effortlessly audit various tokens on both Ethereum and Binance Smart Chain. By simply copying and pasting the token contract address into the search bar, you will receive comprehensive information on exploits, a concise contract audit, and much more. This tool provides access to a complete token audit with a final score, derived from an in-depth analysis of the contract, holders, and liquidity. While a high score can indicate safety, it’s essential to remain vigilant, as smart contracts may still harbor hidden malicious code.

Protect your investments and stay safe with these vital tools for avoiding crypto scams! Also, refer to CoinLaunch comprehensive list of scam crypto projects. 

According to Business Research Insights, the Crypto Trading Bot Market size was valued at approximately USD 36.5 billion in 2023. Moreover, 70-80% of trades on major exchanges are done through trading bots. Automated trading strategies are designed to execute trades swiftly and efficiently. Crypto trading bots often outperform manual trading approaches in terms of performance and allow market participants to trade 24/7. While some AI trading bots may generate substantial returns, they cannot predict future market changes. With the rise of AI technology, numerous scams involving cryptocurrency bots have emerged. 

Scammers exploit the legitimate concept of AI trading bots to steal funds from unsuspecting investors. Crypto bot scams range from poorly programmed bots that fail to function as advertised to entire fraudulent platforms that disappear overnight, taking users' funds with them. 

Fraudlers capitalize on AI technology hype to develop new crypto bot scams.

These scams often follow a similar pattern:

1. Attractive Marketing: Scammers create and promote low-quality crypto trading bots with promises of guaranteed returns or free access, enticing users to sign up. 
2. Initial Success: Victims may even profit from early trades just to reinvest with conviction to yield more.
3. Sudden Disappearance: Once users deposit significant funds, the platform shuts down and vanishes, taking investors' money.

Before trusting your funds to trading platforms that utilize AI crypto trading bots, you should: 

• Research the company and verify its domain and software license. 
• Check the community opinion on a particular crypto trading bot.
• Understand risks associated with the assets delegation.
• Consider how fees and subscription costs affect returns.

Experiencing a loss of funds can be incredibly challenging, but there are decisive steps you can take to enhance your chances of crypto fraud recovery. Follow these steps to navigate this difficult situation and fortify your defenses against future threats:

1. Maintain Composure

The first and most crucial step is to stay composed, in order to make informed decisions and complete the crypto scam recovery.

• Pause and Breathe: Take a moment to calm yourself before moving forward.
• Seek Support: Reach out to trusted friends, family, or the crypto community for emotional support and practical recovery tips.

2. Document Everything

Collecting and preserving evidence is essential for reporting the scam and recovering your funds.

• Capture Communications: Take screenshots of all messages, emails, and transaction records related to the scam.
• Preserve Digital Footprints: Save email headers, website URLs, and any other relevant metadata that could aid your case.
• Create a Detailed Timeline: Record each interaction with the scammer, noting dates, times, and descriptions of events diligently.

3. Utilize Blockchain Analysis

The inherent transparency of blockchain technology can play a crucial role in tracing stolen funds:

• Monitor Transactions: The transaction record on the blockchain explorer can point to where funds were redirected, assisting in your recovery efforts.
• Collaborate with Blockchain Experts: Specialized crypto scam recovery companies utilize advanced analytical tools to track the movement of funds on the blockchain, potentially revealing the identities of the scammers.

Crypto scam recovery demands patience, persistence, and proactive actions. While a positive outcome isn't guaranteed, by following these tips you will significantly enhance your chances of retrieving lost assets. 

Probably, there are some crypto scam recovery services in your area. Reach out to specialized agencies that have experience dealing with crypto fraud cases. After gathering evidence, promptly notify the relevant authorities to initiate investigations. Be sure to file a cybercrime report and provide any evidence you have collected to the crypto scam recovery companies. You can also report a crypto scam using the form below.

The pig-butchering scam is a rapidly growing crypto investment scam that is raising concerns among security experts and law enforcement agencies.

This sophisticated scheme employs a manipulative approach that merges a crypto romance scam with a fake high-return investment portfolio. The term “pig butchering” describes a meticulously scripted and highly intensive method designed to give a victim a false sense of security before the final swindle.

How does a pig-butchering crypto scam work?

Scammers create fake profiles on dating apps and social media and reach out to victims under the guise of friendship or romantic interest. They regularly message a targeted person to gain trust and gradually introduce cryptocurrency investment opportunities. 

After developing a trusting relationship, scammers convinced victims to invest small amounts as initial deposits on a fraudulent platform that seemed legitimate, often displaying modest gains to establish credibility. After convincing the victim to invest larger sums, often amounting to hundreds of thousands of dollars, the scammer disappears with the funds and clears the chat history. In some cases, if the fraudsters manage to target the “right person”, they can directly ask for a crypto transfer, usually under the false promise of a romantic relationship.

Individuals must pay attention to the potential of strangers advertising pig-butchering crypto scams. To avoid being scammed users should thoroughly research investment opportunities, avoid upfront payments in cryptocurrency, and be cautious of promises of quick returns. It's also important to keep online dating and any crypto investments separate. Avoid sending money, trading, or investing with anyone you've just met online!

Red Flags to Watch Out For:

• Strangers send seemingly harmless text messages unexpectedly.
• Strangers quickly attempt to shift the conversation to WhatsApp, Telegram, or similar messenger.
• Scammers usually avoid video calls at any cost, offering multiple excuses.
• Scammers eventually start to promote investment opportunities.
• The investment opportunity appears too good to be true.
• Scammers propose victims invest via fake cryptocurrency apps or exchanges. Always conduct research to validate the legitimacy of such apps. 

A recent hack of McDonald's Instagram account raised concerns about how scammers can exploit major social media platforms to promote crypto investment scams. It might be one of the biggest crypto scams, as hackers stated that they have stolen $700,000 from unsuspecting investors by promoting the $GRIMACE scam token on Solana. The meme coin surged to a $25 million market cap before crashing. All the investors were only able to buy, as the sell option was disabled in the smart contract settings.

Before investing in any cryptocurrency, it's important to research the influencer or company profile on all social media platforms. There's a possibility that only one account has been compromised, and the account owner may confirm this on a different social media platform using their personal profile. For example, Guillaume Huin, the Senior Marketing Director at McDonald's, addressed the $GRIMACE scam token promotion situation in this way. To conclude, avoid jumping into newly launched meme coins from the get-go without performing any personal research.

Telegram has become a hotspot for cryptocurrency enthusiasts, which has unfortunately attracted a wave of scammers. These fraudsters often pose as crypto experts, luring individuals into investing or sending cryptocurrency to another wallet, ultimately leading to significant financial losses. Users might receive messages from someone claiming to have lucrative investment opportunities, but agreeing to invest can result in transferring your funds to a scammer-controlled account. It's crucial to be skeptical of anyone promising guaranteed high returns on your crypto investments, as the presence of scammers on Telegram is rampant. 

Crypto scams on WhatsApp have surged in recent years, taking various forms and targeting users to reveal personal information or send money. Scammers exploit the app's popularity and the availability of phone numbers, especially after a 2022 data leak exposed nearly 500 million WhatsApp numbers. Here are common types of scams to be aware of:

• Friends and Family Scam: Scammers impersonate loved ones, claiming an emergency to solicit money.
• Wrong Number Scam: Fraudsters contact you pretending to be someone else and may gather sensitive information or promote fake investment opportunities.
• Lottery and Giveaways: Messages claiming you've won prizes often lead to fraudulent websites asking for personal information or fees.
• WhatsApp Gold Scam: You receive an invitation to upgrade to WhatsApp Gold, which links to a spoofed site or malware, risking your sensitive information.
• Tech Support Scams: Impersonators claim to be WhatsApp support, asking for verification codes or sensitive details to hack your account.
• Crypto Scams: Scammers build relationships before promoting fake cryptocurrency investments, disappearing once they receive your money.
• Fake Job Offers: Messages from supposed recruiters offer enticing job opportunities that require payment for tasks or personal information.

To effectively avoid crypto investment scams, it is crucial to be vigilant about messages from unknown contacts and to refrain from replying to them. Scammers are often creative and relentless, and they can become highly convincing if they gather enough information about you.

Regardless of their methods, crypto scams share several common characteristics:

• Unsolicited text messages from unfamiliar numbers
• Urgency that pressures you into immediate action
• Requests for money or personal information
• Links or attachments that seem suspicious

Before responding to any message, take a moment to assess it against these common scam traits. This will help you determine if the message is safe and trustworthy.