The post Don’t Fall for These Common Crypto Scams appeared on BitcoinEthereumNews.com.

ZachXBT, a well-known blockchain investigator, recently shared two key “minimum checks” on Telegram to avoid crypto scams. He emphasized that users must accept full financial responsibility if they take risks in these situations and added that recovering lost funds would be extremely difficult. Evaluating a Project’s Credibility is Crucial ZachXBT highlighted two critical scenarios: depositing funds into forked DeFi protocols on newly launched EVM chains and getting scammed by projects with few smart followers on Kaito. “If you make either of these decisions, it is your own personal choice to risk funds, and I will NOT help you,” ZachXBT stressed. Many newly launched DeFi protocols on EVM chains are replicas of existing ones. Their teams often do not create original code but instead, fork from established protocols. This process requires minimal technical skills yet introduces significant security risks. A recent incident highlighted the risks in the DeFi space. The DeFi protocol SIR.trading was reportedly hacked, leading to an estimated loss of $350,000. Despite the project’s documentation promoting it as a “new DeFi protocol for safer leveraged trading,” it acknowledged the risks related to smart contract vulnerabilities. This case illustrates how new DeFi protocols often become targets for hackers. Additionally, in late March, the DeFi lending protocol Abracadabra suffered a loss of approximately $13 million due to an exploit involving collateralized tokens. The second situation ZachXBT warned about involves getting “rugged” (falling victim to a rug pull) by projects with few smart followers on Kaito. Kaito is an AI-powered analysis tool that measures real community interest. He advised that checking followers’ numbers and quality is a basic step to avoid falling for projects that use fake engagement or empty marketing hype. Investor Xero agreed with ZachXBT, stating that Kaito can be a credibility assessment tool. “Kaito has become an amazing security…

---

Filed under: News - @ March 31, 2025 10:23 am