Disclaimer: This article is for educational purposes only. Dexpanse does not endorse or is not in any way associated with any of the tokens, platforms, services or projects mentioned in this article, nor does Dexpanse take any responsibility for the proper functioning of these services and platforms. The information provided through Dexpanse does not constitute advice or recommendation of investment or trading. Dexpanse does not take responsibility for any of your investment decisions. Please seek professional advice before taking financial risks.
TLDR: While you will never be scammed by Dexpanse, the short answer is that unfortunately you can get scammed on Dexapanse’s platfrom.
Why though?
At Dexpanse we strongly believe in equal opportunity and in creating easy and fun to use services for everyone. Anybody, you included, can create a token or presale without needing to fill out extensive paperwork or having to pay large amounts of money upfront. We are providing (and will be expanding) a platform that enables users to make use of a variety of crypto-related services through an easy to use graphical interface, without any prior coding knowledge. What ventures our services will actually be used for is entirely up to the imagination and ingenuity of our users. We are not a launchpad platform that promotes and affiliates itself with the projects of our customers. That is also why, unlike our competitors, we do not take any token fees and so we will not have any gains from the price fluctuations of the tokens launched on our platform.
As of today, the Defi (Decentralized finance) world still has a relatively high entry threshold and seems obscure and convoluted to potential new users, especially those without a technical background. While it is essential to always Do Your Own Research (https://academy.binance.com/en/glossary/do-your-own-research) before investing in a new project, we are of the opinion that cryptocurrency should be approachable and available for all, and that you definitely should not need to know how to code in order to make use of the phenomenal opportunities that this new technology offers. As you might have seen from our other articles, we are huge fans of Binance Academy (https://academy.binance.com/) and will continue working on expanding our own knowledge base, while at the same time streamlining our platform’s functionalities.
Unfortunately, this accessibility and freedom is a double edged sword — if anybody can create a token and presale, then this also includes potential scammers. While Dexpanse will always condemn such practices, the very nature of decentralized services and immutable SmartContracts implies that, apart from educating our clients, we have very limited means of preventing malicious individuals from using our platform. Much like a car dealership that, while selling their cars with the intent that they will be driven responsibility, cannot prevent their customers from driving too fast or under the influence of alcohol.
What can I do to be safe?
We will repeat ourselves by saying that with all things crypto-related you should always Do Your Own Research. To make this process a little bit easier for you, we will go over some red flags to watch out for. And while this list is not by any means exhaustive (nor will following it be enough to keep you safe), maybe some of its content will come to be useful.
Be wary of:
- Decentralized projects that do not have their liquidity locked or have it locked for very short periods of time.
- Tokens in which a significant portion of the total supply is retained by the owner or held by some other unidentified addresses.
- Projects that promise near instant 100x returns or other unfounded claims.
- Projects that do not seem feasible — sometimes what is being promised in the whitepaper or marketing materials is just too good and ambitious to be true.
- Projects with a large, but mostly inactive community on their social media or telegram — this might be due to bought fake profiles or bot infiltration.
- Projects lacking adequate landing pages and/or social media profiles.
- Projects lacking in transparency, exhibiting hidden costs and having no terms of use or contact details.
Finally, we wanted to share with you a ground rule that we ourselves live by, and that is to never invest funds that we know we cannot lose. Cryptocurrency related projects are, more often than not, high-risk high-reward ventures. This is something that you should accept and be fully aware of, before committing your money or time.
Thank you for reading, and as always: “good luck!”.
-Dexpanse Team
