Some serious scammers will meet all these mentioned criteria and still scam people. They will make sure they get people’s trust by making good promises and show some good signs of potential to the projects and they will build their social media handles and also make good post and attempt to list the coins in some reputable exchanges just to encourage investors to fall victims.
6. Check how many exchanges host the token
If the token is only traded on a couple of decentralized exchanges (DEX), it is almost certainly a scam. Listing on a centralized exchange comes with KYC and additional trust, and the bigger the exchange the better the reputation of a listed token.
Do you mean that Decentralized exchanges are not to be trusted? Or do you mean that they are listing coins without potential? Or are you promoting CEX?
Central exchanges are not to be trusted because of KYC. KYC has ruin so many people life and centralized exchanges has gone with people’s money that is why they are not to be trusted with our money as we have seen in some experience of FTM and others.
7. Check the amount of liquidity in a token’s balance pool
Before you invest in a token, you may want to check general demand and the availability of liquidity. It is very easy to check a token’s liquidity on a platform like Uniswap V2 or other decentralized exchanges.
8. Check third party analysis tools
Smell Test – this does an automated audit of the token. The lower its score out of 100, the more likely the token is a scam.
These are good signs to confirm if a project is legit.