Big stage, bigger scams? 5 shady crypto projects that made it to the spotlight
Briefly

Token2049 has faced criticism for inadequate vetting of platinum sponsors, with cases like JPEX and HyperVerse exposing fraudulent activities. These sponsors leveraged events to appear credible but collapsed under investigations, leading to significant investor losses. Key warning signs for such investments include anonymous teams, low liquidity, aggressive marketing, poor tokenomics, and obscure exchange listings. Despite lacking innovation, these coins often thrive on speculation, influencer marketing, and community support, maintaining investor interest even amidst controversies and price fluctuations. Protecting against such projects involves careful research and awareness of red flags.
ZachXBT criticized Token2049 for poor sponsor vetting, emphasizing that platinum sponsorships do not guarantee legitimacy. Shady sponsors like JPEX and HyperVerse collapsed amid fraud investigations.
Red flags include anonymous teams, low liquidity, overhyped marketing, poor tokenomics, and listings on obscure exchanges. These factors contribute to the unpredictability fueling their survival.
Investors are often drawn to these coins not by innovation, but by speculation, influencer buzz, and cult-like followings, which continue to sustain engagement despite risks.
Certain digital assets persist in the cryptocurrency market despite controversies, price drops, or lack of underlying value, reflecting sustained interest from dedicated followers driven by speculative excitement.
Read at cointelegraph.com
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