Tokenomics: How to avoid scams and fake projects?
I've decided to write about the scams, Ponzi schemes, and fake projects in the crypto industry.
I'm a developer with 30+ years of experience in Web2, gaming (Unity, Unreal), and Web3. With this background, I can quickly spot fake projects riding a hot narrative that will never deliver or that mislead investors about their business model.
Meme Coins vs. Big Projects – Who's the Real Scam?
The common belief is that meme coins are scams. While some are, others have better tokenomics and fundamentals than major Layer 1 projects. On the other hand, big funded projects aren’t necessarily more honest—their scams are just more sophisticated, preying on investors' lack of technical knowledge.
Most Common Crypto Scams & Red Flags
1️⃣ Coins promising cheaper services using their own token 🚩
Many projects claim that using their token will make their services cheaper (e.g., Filecoin, Render). Why is this a scam?
If the coin succeeds and its price rises, then the service becomes more expensive—making it worse than the competition.
This contradicts their entire business model, proving it's unsustainable.
2️⃣ DeFi protocols without 1:1 backing 💰💀
Many bridges and lending protocols use their own token as collateral—this is a disaster waiting to happen (e.g., Thorchain, Thorswap).
As long as the token holds value, the system works.
But if FUD spreads, a bank run will wipe out liquidity and make the protocol insolvent—there’s no safety net.
3️⃣ Gaming projects claiming to use AI agents 🎮🤖 (It’s a lie!)
It is technically impossible to have AI-powered NPCs in a game at scale (e.g., Astra Nova).
AI agents require 12GB+ of VRAM per instance—you cannot have hundreds running in a game.
Many GameFi projects slap "AI" on their marketing because investors don’t know better.
🔍 How to spot a fake GameFi project:
No shadows on characters (e.g., BigTime, Valhalla) = outdated pre-2000s tech
"Arcade games" = nobody cares about them
League of Legends clones = LoL is 15+ years old!
Claims of 80+ devs = At
4K+ per dev, that’s $380K/month in salaries—do the math!
Legit Meme Coins Can Be Better Than "Big Projects"
Example:
PEPE 🐸
Despite being a meme,PEPE has better tokenomics than most of the top 200 projects.
✔️ No staking = No inflation (fixed supply, no endless token dilution).
✔️ No central ownership = No rug pulls (tokens distributed to the community).
✔️ Strong market makers (e.g., Wintermute).
✔️ No fake narrative—it’s just a meme, no BS.
✔️ Huge liquidity & low slippage on major exchanges.
Final Thoughts
🚫 Don’t judge a project by its marketing—check its fundamentals!
✅ Avoid inflationary projects
✅ Avoid projects with too many insiders
✅ Avoid narrative-based scams that sell you fairy tales
💡 Hope you found this post insightful!
DYOR! 🧐
I'm a developer with 30+ years of experience in Web2, gaming (Unity, Unreal), and Web3. With this background, I can quickly spot fake projects riding a hot narrative that will never deliver or that mislead investors about their business model.
Meme Coins vs. Big Projects – Who's the Real Scam?
The common belief is that meme coins are scams. While some are, others have better tokenomics and fundamentals than major Layer 1 projects. On the other hand, big funded projects aren’t necessarily more honest—their scams are just more sophisticated, preying on investors' lack of technical knowledge.
Most Common Crypto Scams & Red Flags
1️⃣ Coins promising cheaper services using their own token 🚩
Many projects claim that using their token will make their services cheaper (e.g., Filecoin, Render). Why is this a scam?
If the coin succeeds and its price rises, then the service becomes more expensive—making it worse than the competition.
This contradicts their entire business model, proving it's unsustainable.
2️⃣ DeFi protocols without 1:1 backing 💰💀
Many bridges and lending protocols use their own token as collateral—this is a disaster waiting to happen (e.g., Thorchain, Thorswap).
As long as the token holds value, the system works.
But if FUD spreads, a bank run will wipe out liquidity and make the protocol insolvent—there’s no safety net.
3️⃣ Gaming projects claiming to use AI agents 🎮🤖 (It’s a lie!)
It is technically impossible to have AI-powered NPCs in a game at scale (e.g., Astra Nova).
AI agents require 12GB+ of VRAM per instance—you cannot have hundreds running in a game.
Many GameFi projects slap "AI" on their marketing because investors don’t know better.
🔍 How to spot a fake GameFi project:
No shadows on characters (e.g., BigTime, Valhalla) = outdated pre-2000s tech
"Arcade games" = nobody cares about them
League of Legends clones = LoL is 15+ years old!
Claims of 80+ devs = At
4K+ per dev, that’s $380K/month in salaries—do the math!Legit Meme Coins Can Be Better Than "Big Projects"
Example:
PEPE 🐸Despite being a meme,
PEPE has better tokenomics than most of the top 200 projects.✔️ No staking = No inflation (fixed supply, no endless token dilution).
✔️ No central ownership = No rug pulls (tokens distributed to the community).
✔️ Strong market makers (e.g., Wintermute).
✔️ No fake narrative—it’s just a meme, no BS.
✔️ Huge liquidity & low slippage on major exchanges.
Final Thoughts
🚫 Don’t judge a project by its marketing—check its fundamentals!
✅ Avoid inflationary projects
✅ Avoid projects with too many insiders
✅ Avoid narrative-based scams that sell you fairy tales
💡 Hope you found this post insightful!
DYOR! 🧐
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.