Everything You Need to Know to Spot Scam or Fake Tokens

This story was originally published on HackerNoon at: https://hackernoon.com/everything-you-need-to-know-to-spot-scam-or-fake-tokens.

Malicious actors create useless tokens in a network (or pretend they’ve done it) to try and snatch people’s money. Do you know how to spot them?

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Scammers often create counterfeit tokens that mimic legitimate assets to deceive investors. Honeypot tokens are built to trap investors by preventing them from selling their holdings once purchased. Some scam tokens don’t offer locked liquidity at their release, implying creators can withdraw the entire liquidity pool at any time.