CoinGecko named signs of scam tokens and warned of risks for newcomers

CoinGecko analysts published a guide to identifying fraudulent tokens and noted that the vast majority of new investors are unable to recognize scam on their own. According to the platform, the key warning signal is the concentration of more than 50% of the supply in the top 10 wallets – unless these are addresses of centralized exchanges or liquidity blockchain contracts.

Experts also pay attention to the total number of token holders. If it decreases, it indicates a loss of interest in the project. Among the critical signs of fraud, analysts highlighted honeypot-type tokens that cannot be sold, commissions hidden in a smart contract, and a team with a history of involvement in fraud, including ragpools.

Pool liquidity has been called a “key indicator” of reliability. The locked-in value in the pool significantly reduces the likelihood of a sudden exit of the creators. The novelty of the token, on the contrary, increases the risks: most scams occur in the first weeks after launch.

CoinGecko noted that its GT Score metric can be used for preliminary evaluation of a project, but is not a substitute for a full-fledged independent study. The company reminded that in the first quarter of 2025, about 50% of all new cryptoassets ceased to exist.