🧵with seemingly dozens of trustlines being issued on the XRPL almost daily, I figured I would make a thread on how to identify genuine legit projects vs. scams/money grabs.
1. The very first thing to check, is the issuer account "black holed". This means that the project has given up access to the issuer account so that it can't issue more token supply thus supply for tokens/IOUs/NFTs are fixed.
2. Does the project have a website, social media, discord, tokenomics, whitepaper? Low effort scams might not have put the effort into creating and building a community.
3. Is the team "doxed"? This means the team isn't anonymous. Anonymous teams are a red flag. Why would you want to buy art/token/product from anonymous people? What do they have to hide? Scammers want to remain anonymous.
4. Has the project seemingly popped up overnight and is doing a "pre-sale"? Doing pre-sales before you have any viable art or product is a red flag and screams money grab. Why would you want to give a project an interest free loan. This also runs afoul of many securities laws.
5. XUMM kyc verification is meaningless if the project team is not doxed and is anonymous. If the team pre-sales and then walks away from the project months later, there is still no accountability.
6. Does the team have a dedicated dev that has developed for blockchain? Seems like a no brainer question, but we've seen an alarming amount of projects that don't and/or are farming work to 3rd parties or using 3rd party software.
7. Does the project have vision? Do they have a plan? What are their ambitions for long term viability? What are their financial needs? Will they exist after the next bear market? Who is going to keep building?
8. Transparency. What kind of transparency does the project have? Will they share their distribution wallets and track tokens retained? Will they have continual updates on progress toward goals?
9. Innovation. Is the project moving the space forward? Are they doing the same thing as every other project? How ambitious are their goals? What are the risks of those goals failing?
This isn't an end all list, but hopefully these questions and points to look at when vetting projects will help you in your quest when setting up trustlines or deciding to buy tokens on the DEX.
bonus: This is why XUMM KYC is seemingly useless against scammers. These coins were all issued by the same account and were all KYC'd through XUMM.
@WietseWind what can be done to slow this down? These are all KYC verified.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with xrpl_Adam

xrpl_Adam Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Thank you for your support!

Follow Us on Twitter!

:(