Crypto Projects Thrive on Speculation and Hype: Navigating the Risks
Investigator ZachXBT has highlighted how questionable crypto projects persist despite controversies, often due to speculative trading, dedicated communities, and hype. He stressed that platinum sponsorships do not guarantee legitimacy, citing examples like JPEX and HyperVerse, which led to significant investor losses.
Key red flags include anonymous founders, aggressive marketing with unrealistic return promises, low liquidity, and unclear tokenomics. Thorough due diligence, examining team history, marketing tactics, tokenomics, and exchange listings, alongside diversification and using reputable auditing tools, is crucial for investor protection.