How To Identify Whether A Crypto Project Is Legitimate?

The Squid Game token was a recent example of crypto-related scam. It tried to take advantage of the popularity of the Netflix show of the same name.

The ballooning cryptocurrency market has attracted huge interest from new investors. The rise is so promising that new coins are being added almost every month. There are now more than 16,000 crypto coins traded, according to CoinMarketCap, a market research agency. But this rapid expansion is proving to be a cause of concern as there are many coins that are launched with the sole aim of riding an existing trend or euphoria and cheat or scam investors of their money. In such a situation, how do we differentiate between the legitimate coins and the illegitimate ones?

To an amateur investor, most coins appear similar with their respective promise of returns and the function they represent. An example of a coin-related scam in the industry was the Squid Game token. Launched following the massive popularity of the Netflix show of the same name, it gained value and lost it with lightning speed. The developers vanished with tokens worth a million dollars, leaving the investors high and dry.

However, there are some red flags that all investors should keep in mind when investing in a new coin – or largely in the cryptocurrency industry. Here are some of them:

1.Verify the project