4. No clear use case: A legitimate crypto project should have a clear use case for its token. If a project cannot articulate a clear purpose for its token, or its use case seems vague or broad, it may be a scam.
Before investing in any crypto project, investors should do their research and look for these red flags. By being vigilant, investors can protect themselves from scams and make informed investment decisions.
What was the clear use case for SHIB or PEPE, for example? When these projects were yielding hundreds of thousands of percent returns, he was not present. You can apply this question of utilization to the other projects as well. A lot of projects have no product, they are just clones of well-known projects that were created just for speculation. They can live for years and they are not scams. Only a small number of cryptocurrencies have a real use case for their token in the ecosystem. The rest don't have one, but that doesn't make them scams. Just like the projects that had this utility could also be scams, like FTT or LUNA.