over the past few months, Bounce Token users have reported losses due to scams on the Bounce network. As with any investment, before you invest in cryptocurrency, know the risks and how to spot a scam. Here are some things to watch out for as you consider your options.
1. Bounce Finance
Unfortunately, scams are a daily issue in the crypto-space. This also counts for Bounce’s auctions. As of now, Bounce only provides the platform for users to buy/bid/sell but does not have many security measurements on how to validate if a seller is a potential scammer.
2. How to spot a scam?
There are many indicators for spotting a false investment opportunity. For this guide, we will be using the auction “ALICE Launchpad”.
2.1. Validate the contract address via Etherscan.io
Every auction provides an Ethereum address (contract), as seen highlighted below.
- Example Ethereum Address: 0xfe9F486C3bEA541cf74249Da68896c3356D141aa
- Copy the address, go to Etherscan.io & paste the address into the search field (here)
Pay attention to the following detail:
- Tracker: Normally (this goes for most of the projects, a token image is set. If not, be suspicious of the cryptocurrency because it might be scam.
Pay attention to the following details:
- Token Image: As established before, this should be set.
- Token Name: The name is not set, displaying only “Token” and then the Tag “ALICE”
- Official Site: Just above Social Profiles, the official website URL should be displayed.
- Social Profiles: Profiles like Twitter, Telegram and Reddit should be set.
2.3. Search for the token on Etherscan.io
Another important step is to search for the token. This falls under the category DYOR (= Do Your Own Research). Etherscan.io allows users to search for tokens by name, so in our case type in “ALICE”.
Instantly, you are presented with 3 different tokens, whereas only two fit our search profile:
Since we are not blindly investing into a project, we should know the website URL, and what the logo looks like. This can also be checked on coinmarketcap.com, the leading cryptocurrency platform for prices and charts.
Validating only takes a couple of minutes and saves you a lot of hassle and money.
3. I’ve been scammed - HELP
Falling as victim for scam is never a good experience, also depending on the funds invested. So what can you do?
3.1. Are my funds gone?
If investing into a scam, there’s probably close to no way to get a refund. But things can be done. Scammers are part of the crypto-space and it’s in your hands unfortunately. You are responsible for your own investments.
3.2. What can I do?
Your actions are limited at this point.
3.2.1 Create a topic on Bounce.Community
Report it to the Bounce Community in hope that the team/devs/support can do something.
3.2.1 Report the address on Etherscan.io
As seen below:
3.2.2 Comment on Etherscan.io
Write a comment that helps others to identify the scam faster.