There are three types of cryptocurrency scams.
2.NO KEY INFO
3.NO CODE BASE
there are three faces of scam in this abstract form.
CLOUD MINING SERVICES
There are cloud mining websites that offer an opportunity to people to get involved in mining operation and gain profit from mining just by giving an initial capital upfront. There’s a scam call The PONZI SCHEME. Where in you’ll get paid for every new member that would come along to join the network. Eventually, the system disappears, and the members get into a disaster.
BITCOIN INVESTMENT PACKAGES (BIPs)
It is an investment program that promises a high-profit income to investors. Members will be buying subscription package that will allow you to get a regular payout in a duration of time. Nonetheless, because of its PONZI SCHEME structure, sooner or later BIPs will eventually disappear.
There are lots of MLM that is questionable on their service and products. Members get profit through referral programs, old members get paid from the deposited money from a recruit and get a reward for old users by inviting a new member.
Here is a short video about The PONZI SCHEME mentioned earlier https://youtu.be/dM90BtD6y4A
2.NO KEY INFORMATION
A white paper is considered the most important document to know how a cryptocurrency would function. So if a cryptocurrency doesn’t have any information about its operation or a Whitepaper that is questionable about its technological justification.
UNREAL TEAM MEMBERS
It is essential for a cryptocurrency company to have a good team of developer. Users must be aware of the background of everyone in the group to check if they are legit.
If those members seem to be nonexistent, the best advice is to stay away from that cryptocurrency.
Failed to show Roadmap
The roadmap is the one who sets the expectation of people on a specific project. It declares the objectives and date which they want to make the project happen. It is crucial to check the project if it’s accurate according to the timeline based on their roadmap. If there’s a failed information that did not match on their roadmap, then it's a 'NO' to any offer from those cryptocurrencies.
3.NO CODE BASE
It is evident that a cryptocurrency is uncommon, credits to the code base. A cryptocurrency will not work without a code base. Code base is not a cryptocurrency.
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