Unfortunately there are a lot of scams in the web3 space. The projects doing real good far outweigh these scams, of course, but this doesn’t take away from the importance of being able to recognize bad actors in the space. In this episode, we discuss what you should look for when evaluating potential partners and projects in web3, and some red flags that could indicate that a project is a scam.

The questions to ask yourself when evaluating a project?

Is there a solid whitepaper or guiding documentation for the project?
Who are the developers? Are they doxed?
Who is the project partnering with or supported by?
How long has the project been around?
What sort of social media activity is there around the project?
Is there a solid, well researched value proposition behind the project?

It’s important to note that there is no, 100%, catch-all formula when it comes to evaluating projects, and every project needs to be evaluated on it’s own merits. Please be careful when evaluating projects, and make sure to take an individualized approach to evaluating each project.

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--DISCLAIMER --
While we may discuss specific web3 projects or cryptocurrencies on this podcast, please do not take any of this as investment advice, and please make sure to do your own research on potential investment opportunities, or any opportunity, before making an investment. We host a variety of guests on this podcast with the sole purpose of highlighting the social impact use cases of this technology. That being said, Crypto Altruism does not endorse any of these projects, and we recognize that, since this is an emerging sector, some may be operating in regulatory grey areas, and as such, we cannot confirm their legality in the jurisdictions in which they operate, especially as it pertains to decentralized finance protocols. So, before getting involved with any project, it’s important that you do your own research and confirm the legality of the project. More on the disclaimer at cryptoaltruism.org.

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Episode 42 - The good vs. the bad – Evaluating web3 projects and avoiding scams

Crypto Altruists: Real-World Stories of Social & Environmental Impact with Web3