When is a Crypto project a scam?

  • A Con. An opportunity designed to take money for a product or business that they know does not work. Like Theranos/Elisabeth Holmes blood scam. Yes, even the smartest people get scammed.
  • A Ponzi. An investment promises fantastic returns and the returns are paid by the new investments. Bernie Madoff was biggest. Again, the smartest investors get scammed.
  • A Pyramid. A promotional opportunity where the promoters earn from the investments of new promoters. Countless MLMs have been pyramids as the incomes were not based on profits from customer purchases.
  • Founder’s Fraud. The founders/executives steal the money of a good opportunity. These are all too common in Crypto and are called a ‘rug pull’. I have experienced one of these first hand! Grrrrr.
  • Bullshit. LOL. It’s the best name for it. An opportunity taking investments yet clearly have no chance of success and the promoters should know better. Only the naive or greedy invest.
  • Fee Fraud. Few people would call this a scam yet countless people are scammed for fees by famous companies especially in financial business. Banks fees, wealth companies, underfunded pensions, etc. These scams are so big, nothing is done yet I had to put it here.
  1. Ignore Google. There is a whole industry based around ‘scamwatch’. Run by scammers who sell advertising and affiliate opportunities. Only an idiots would believe a headline saying ‘Is XYZ a scam?’
  2. Evaluate the product as a customer. SO many scams, especially Ponzis and Pyramids, have products with little market potential. The most beautiful marketing will not change the fact that a lipstick costing $30 has a tiny market. A health product costing $100 has limited markets. A highly complex crypto promoted with little credibility or team ensures their coin has no future. Demand drives value.
  3. Evaluate the team. Can they deliver the vision? I cannot tell you how many cryptos are backed by guys who will never commercialise the project. They are techies or academics or have no proven executive experience.



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Ed Ludbrook - Future of Crypto

Ed Ludbrook - Future of Crypto

I am Financial Futurist, Educator & Entrepreneur. Multi-million selling author in 20 languages. The Future of Crypto book coming.