A scam token is a cryptocurrency that is launched for the express purpose of stealing investor funds. These are often developed on a pre-existing blockchain, such as Ethereum, as it's easier for a cybercriminal to do this instead of developing an entire blockchain.
Is coingecko a scam?
If you cannot find the token on CoinGecko or DappRadar’s token explorer (or a similar coin price tracker), the token is probably a scam. If it is on the token explorer and you see warning notifications like this, proceed with caution: All legit tokens share their information with Token Explorers for the purposes of verification.
How do you know if a token is legit?
To identify the legitimacy of a token, Check Point researchers looked at its Smart contract on the blockchain network. Smart contracts are programs stored on a blockchain that run when certain conditions are met. The programing language in a smart contract is Solidity.
What is a cryptocurrency scam?
This scam generally involves developers pulling the plug on a project and hitting the road with the money investors put into a token that they assumed had promise. Because cryptocurrency is highly unregulated, it's easy for scammers to create and promote a token without any kind of license or credentials.
