In this video, I share with you how to not get scammed buying small cap coins. I review a recent scam called Solanax.
Hey there! In this video I’m going to share with you how to not get scammed in cryptocurrency a lot of people are buying a lot of small cap all coins because they believe they have so much potential there’s so much hype around them people blast them on social media and then they end up putting a lot of money into them and end up losing and if I can help more people not lose in crypto.
I’m gonna help people win because the number one way to make a lot of money in cryptocurrency is to literally limit your losses if you can manage to not lose money you’re gonna do very very well but the problem is the majority people cannot manage to not lose money so I want to share with you a few things that I look into when doing fundamental research a little bit on the technical side and then a lot of deep dive into their team and I just found a project that is a scam.
I actually found this last week or maybe 10 days ago and decided not to invest for these reasons and now we’re seeing it exactly play out so I’m like I gotta at least shoot a video about this right so first of all I do want to share a screen with you so you guys can actually see what I am talking about we’ll start with with the project that we’re actually looking into today which is Solana x.
So I’m going to I’m going to go through the project right now go through the team go through like how to actually look at this and then I’m also going to bring up some really really important things at the end where I talk about things to not do when investing in crypto which will help you again make a lot of money because if you manage to not lose money you can make a lot of money so this is the project we’re looking at it’s Solana x.
It’s s-o-o-d a lot of first of all scan projects will will just use the same name as the project so just be a little aware that it doesn’t mean that it’s not it just it helps the park the project get marketed easier so I’m not saying that that’s that’s a sign at all I don’t believe like for example 8x is a scam at all but it’s you know it’s an easy way to just throw up a name so just look at that to start secondly I look at the rank right.
What is the rank actually at well this is has a really small rank so it’s likely really high risk I like to look at the market cap okay it’s 2.7 million apparently it’s 2.7 million but if you look at this the CMC team has not verified the project’s market cap so anytime there is this little red symbol here that means that CMC or coin gecko has not actually verified that that is real so it’s literally just the team or whatever they’re pulling the data from an exchange that’s that’s crappy.
It’s who knows if they’re reporting the right data and then a really important thing is to when you’re looking at our project too is to also look at the volume you want to see high amounts of volume on a project that has a healthy market cap if it has a lot of volume and the price is going down and has a really small market cap that probably means it’s being sold off which actually relative to its market cap.
It has a lot of volume so that’s exactly what’s happening right now is it’s being sold off but you do want to see like healthy amounts of volume on projects because that means that people are actually interested in it people are actually trading it okay then I will also go look at its circulating supply so again this has not been verified so really none of this info really matters at all but I do like to see more of the tokens actually released in circulating supply there’s only let’s see 14 million released out of 80 million which isn’t very good.
So I’d like to see more of the tokens released doesn’t mean this scam doesn’t mean you know at all but I do like to see more of the tokens released out of the the max supply just the higher percentage than that which again this is just self-reported so who the heck knows if it’s even true big red flag the first thing right off the bat are these big wicks right here so if we look in first of all it only goes back to august like 21st.
So this project was like just released but if you go back look at these wicks it brings the price all the way down to nothing to literally zero so this is a big red flag if there’s huge spikes in in the price i do not like to see that whatsoever and then that’s about as much as you want to look at on you know on coin market cap they’re not going to have much ratings or anything on on really small cap coins.
There’s no way for them to do that so then we would go to their site all right their site it’s a little bit weird it’s already so actually one other thing you’d maybe want to look at is the actual exchange that it is listed on which you can just go down to markets so it’s only listed on x markets which does not mean that it’s a scam at all but x markets is an IEO where initial exchange it’s an initial exchange offering exchange where a lot of new projects get listed on and they don’t really do much due diligence into the project.
So just realize that if it was listed on Coinbase on Binance on you know some more reputable exchanges it’s likely past their their due diligence so let’s see it actually is also a scam you said no no 8x is not a scam to my knowledge at all they have real people behind the project so no I do not think 8x is a scam.
I still have a lot of ADAX in my own portfolio but let’s go to their site real quick so they have a real flashy sight I’m not going to waste your time going through everything it’s really really just basic information like there’s not much first of all the road map only goes over two quarters so early q3 and then q3 again and then q4 so they their vision and their road map for the project is literally six months which is not a good sign so then their ecosystem blah blah blah core team all right.
I like that they have their core team listed here that’s awesome I’m glad they have they have pictures of them they should also have it linked like to their LinkedIn or at least one of their social medias I would prefer they have their last name on here as well but they they just put a letter here which we’ll go into here in a second and then I do like to see this so the economics behind it which again this is self-reported so no one knows that this is actually verified but it does I do like to see the team with smaller amounts of the supply of the token.
So this is good to see that the team has five percent all right but again this is not verified information so they can put whatever they want on this site it’s a clean looking site it actually looks good but from here I would want to go into their twitter into their different platforms into telegram see what people are saying in their telegram channel what’s the overall sentiment in their telegram channel and then look at their twitter as well like what how active is the twitter.
I’m not gonna go into it but how active is it are they just like hyping up the coin saying oh this is gonna happen oh we might do this like or are they actually forming real partnerships with real companies is there real volume going through it are they posting real data those are the things that I’m also looking for and then you need to re this is the most important part which before we get into that we’ll look at their white paper which by the way guys anytime you look into a project.
You need to go through their white paper you need to make sure that the words actually make sense okay that it’s not some like random person typing up a bunch of gibberish so literally read through it make sure it makes sense make sure the time frames of on when they’re saying makes sense and cross-reference it with their website you usually would like to see somewhat of the team on here you want to see the same thing as the website so that for the most part checks off their road map.
Again a little bit longer they have actually going into okay so they have it going into 2022 so a little bit better and they have a disclaimer so this is a pretty short white paper it doesn’t really say a ton obviously we didn’t just read through the entire thing but overall I mean I would rate this like a a c plus or a b you know if I actually depending on how how if this is just a bunch of gibberish or if it’s actual data that’s important that would determine whether I’d rate it higher or not so let’s go into the most important part which is their team.
So right off the bat I would start with their CEO because that’s usually the founder the thing that you want to actually see so I would go look into their CEO and then go down the line and look at other executive positions on their team right off the bat the reason why I know this is a scam is because this so first of all he’s working with a different team now code a KODAI finance co and you can see right here I will make a brief and straightforward announcement.
I’m resigning from salon acts due to personal reasons that’s why I haven’t been active with you guys here don’t worry let’s look at the whole post don’t worry I’ve left Slaunox in the gold hands of our cto Madogalis who will continue to grow and expand the platform over time from now on I will be concentrating my efforts elsewhere for the last time stay strong soldiers so he just the CEO just left the project to go for personal reasons but he’s going to work on a different decks which is a code finance.
So I would absolutely not invest into this let’s see how many people are working here now so zero employees so we’ll probably just create another pump and dump and dump some people right into the garbage so that’s a not good sign to see their CEO leaving so when you get to let’s say that this is not a real person let’s actually go look at the company so let’s go to Solana x okay.
They actually have decent employees they have eight all right that’s not not too bad but then I would go one by one through their employees and see are they actually real employees so first of all let’s go back to the man himself whatever the heck this guy’s name is and look at his activity so does he have any activity okay he posted once two hours ago resigning and he liked one post okay.
Well that’s that’s great to see so that’s not a good good thing to see with zero activity and then I like to look into who is actually endorsing them for the skills that is actually you know claiming to endorse him for some type of skills so I’ll look at this and I’ll say all right who is actually endorsing this person and I’ll click on them well this is a new news coverage guy that looks to be out of India and it looks like he is just a PR person so that’s not a good sign.
Let’s look at the other person oh she’s also a PR person out of India so this guy just got you know probably fake PR done and then he said hey can you go endorse me on LinkedIn so he endorsed himself there then another thing I would do is I would go actually look up this person’s name so I’d copy their name and I would google search them and I like to look at images so are there any more images of this person no there is not there’s this one on his LinkedIn.
You can see it’s from LinkedIn but all the other ones are of this guy that has this beard and let’s go like actually look at this guy and see what he’s about because it turns out that he is the actual real whatever the heck this name is I’m not even going to try to pronounce it but if you go on look in LinkedIn he is the real deal he’s the real person.
He actually has a real company and and all those things so you know nothing else came up on his name there’s no other photos of him online he has no activity his PR is from fake Indian people overseas I mean maybe they’re real I don’t know but they’re from PR people that’s the only endorsements he has his interests are very basic.
They’re just on like basic you know you know the school he apparently attended and some other basic you know crypto projects so that’s that’s really not a good sign from there you wouldn’t even need to really go into their other this guy oh the cto that he left it in good hands with he has 10 connections so that’s that’s a great great thing to see 10 connections on LinkedIn and that has zero endorsements.
So that’s also not a good sign to see and let’s just look at his activity nothing and let’s look up his name remember this is the gold hands this is the gold hands that the project is in guys we can rely heavily on this a lot of times they will pick up names of other actors or entrepreneurs in order to make sure you can’t find any information on them so I don’t see that here he is right here.
It’s a dark photo you can’t really see his face that well but you can tell he’s a big guy with a big nose and he is also not on here and then if we just look down here I mean I’m not even gonna go through this I already know it’s it’s fake so that’s a big a big scam to be honest.
You wanna go through their team another funny thing I did on LinkedIn is this is what I’ll do I will literally message these people so if you go back to their team okay the head of customer service Gabrielle here you think she would answer customers don’t you think I mean maybe if you’re in customer service and then Monica from human resources Monica you should be on top of your stuff girlfriend if you’re gonna be hiring and if you’re gonna be hiring you’re probably looking for great talent because it’s such a fast expanding you know Dex right.
So they’re gonna be hiring a lot of people so I’ll go there and actually ask them hey Gabrielle I just want to briefly connect about the project blah blah blah and the expected date of the full launch of the decks up nothing hey Monica is slander x hiring nothing because there are also fake profiles which also this is will be a good example she has 256 connections and then you go and look at their activity and all the activity is just liking different posts that are just like really random so they won’t really comment on anything if they comment.
It’ll be like one word but they’ll just like a bunch of random posts to make the profile look like a real profile it’s literally just all liking posts and that’s it so there’s nothing else so that is another way to look at it is the biggest way to look is at the team.
I’ll show you guys a few other things also you can go to is this coin a scam dot com and literally go look up the project and see what they are rating it with early stage projects they don’t know too much on on the you know project so like they won’t have like a ton of data as far as like a statement and a full report on the project but they will have like basic stuff like the sentiment the community they’ll rate, the community the rate, the volume like I was talking about earlier.
The actual volume and this is rated really low it’s a 2.23 it’s very poor so as you can see that and then yeah those are major things another thing you actually want to look at is GitHub so this is where people will store you know software so they’ll like write all their code of a project on GitHub and if you search the product name or project name and then GitHub you can then go to actually GitHub and actually look at projects being built this one does not actually have anything because Solana x probably has literally no code behind it but not every project is built on GitHub.
So I don’t want you to think that that’s the only thing but it is you know good to at least look into see if it has a GitHub see if they’re active see who you can actually see the people that are writing the code like who’s actually writing the code and all that so that is Slanex so they are not real.
I would not I would follow whatever project that that guy is creating and not invest in that because you know they’re a scam they use pretty good LinkedIn profiles and they make everything look good they make it look like they’ve worked with different companies and if you actually go and click on the different companies they’re usually not much of a company they have two employees or they’ll just say that they’re working for like major companies when they really didn’t because you can you can pretty much say anything but the the endorsements, the activity, the connections all those things are really really important and then I’ll say the last thing guys like I mentioned at the beginning of this video.
If you can manage to not lose money you will make a lot of money in crypto so like I’m telling you just work on not losing money in crypto okay and the way that you can do it is literally one of the easiest ways is to just invest in the top ten by market cap they have they’ve made it that far okay.
The industry is rapidly growing if there’s a large market caps that means there’s a lot of money in the project and that usually means there’s a lot of people and possibly even institutions behind it so at least they’ve gained the credibility up into that point or you maybe you expand in the top 100 but if you want to pick small caps i’s telling you you’re you’re taking a whole nother risk on on that and then just proper portfolio allocation like maybe this is you maybe you’re like you want intermediate growth and you want to have you know maybe you have three percent in small caps.
You’re using two percent of your portfolio for trading you have another you know 10 in mid caps which I consider on the coin market cap between 100 and 200 and then maybe your large cops make up 25 of your portfolio and you have 60 in bitcoin right or maybe you’re a little bit more high growth you’re shooting for like a 700 average return and you’re looking at more of like a three percent of five percent of smart small caps 12 mid caps so just proper portfolio allocation based on how much risk you want to take the further.
You’re going down on these market caps so the larger this number is right here that means the less capital it has in the project the riskier it is all right so just realize there’s more risk in projects that don’t have much traction they sometimes don’t have traction because they’re either really early stage or they’re just not good projects you know if you can find one that are early stage that are good projects that have a small market cap.
You can make a lot of money but I’m telling you you got to understand like this this little relationship here with risk and reward when the risk when so let’s say you’re looking at a project that’s going to do a hundred thousand percent right that’s what someone told you is going to do what you got to realize is you’re on a seesaw effect here so the when there’s when the risk is lowered the probability of success likely increases and when risk increases the probability of success usually decreases.
So if you’re taking massive risk with a lot of projects just because you’re shooting for this moon shot of a hundred thousand percent return well the probability of that actually becoming a 100,000 return is is likely lower so you need to you need to look at the expected return of the project not just like oh this is what someone said it could possibly do because it has a small market cap all right.
So anyways I will and let me look at I’ve already went through like the whole ADAX team by the way so like I don’t want I don’t feel worried about ADAX at all they’re at what 121. first of all a healthy pullback is is absolutely necessary when it erupts but let’s go I’m not going to do a deep dive on them because I don’t have too much time but if you go look at their actual like let’s just do a real brief look at their their CEO okay.
He’s in Germany he has 500 connections that’s good to see I actually have some mutual connections that’s also good to see he’s got a lot of activity he’s got 11 000 followers which is good let’s actually look at his recent activity he liked a photo he liked a photo what did he oh he reposted this which is good you want to see them actually posting things he liked this photo like that blah blah blah like that like that commented on this.
It’s good to actually see comments let’s see like that commented on this happy birthday with this guy let’s see if he’s actually a reputable guy yeah he has 31 000 followers so like yeah like this guy for the most part let’s see how like far his activity goes as well let’s see if we can find one good thing to find is like really old comments as well so let’s see here come on old man come on timo three months ago.
He’s posting things about this other company which is still looks like a fintech based company likes this let’s also search his name come on timo let’s go bro let’s look at his images across the board he’s got a fair amount there he is right there sugar daddy doge what the heck is this him sugar daddy doge passive income meme okay.
This is this is just a meme so that’s not that’s hilarious ico bench interesting I would like to see more photos of him here he is right here actually I think so this is a nice old photo of him that’s good to see [Music] so yeah I mean overall and if you look at his LinkedIn profile he does not where is he timo he looks pretty real so let’s look at his endorsements though that was probably the most important part he has 71 endorsements.
So if you actually go look at let’s look at so a news coverage that’s a little weird I mean not weird because he has so many of them but I think this is the same person I think this was actually the same yeah so I mean this could just be a PR company this is the same person that did Solana x PR this is the same exact profile but this actually looks like a real this is actually a real profile .
So this guy honestly that does this guy could just be doing PR for crypto projects there’s a lot of people that do that and the Solanax guy found found him easily as well so that really doesn’t mean anything but I would I like to do is look at just random okay.
Let’s click on like a random person 500 connections they have they’re also heavily endorsed as well I like to see that let’s look at another completely random one we’ll stop here come on heather let’s see what you got 500 plus connections and she’s got solid experience and she’s heavily endorsed as well so yeah I feel really confident that timo is alive oh and let’s look at this guy as well is he endorsed he’s got 10.
Let’s look at a random person here Roberta 500 connections she’s pretty heavily endorsed as well and decent interest so like yeah overall team looks good and they actually have a real demo of their project and everything so I would be really really surprised if ADAX was was not real so I feel good about the project anyways Nigeria says I won the lottery 4.7 million all I have to do is send him a 12,000 processing fee.
Isn’t that great? Yeah! exactly. I know just send him the 12 grand anyways yeah there was an interview with the cmo yeah let’s look at the CMO let’s like let’s look at let’s see if he’s got any like SEO does the CMO have any SEO we will co chat with a CMP I am a robot and here he is let’s make sure that this is actually his face is this his face no timo what what is this what was this guy’s name Dovarius yeah.
He’s got the little side trim and the blim blim let’s see yeah that’s him so that’s really important like the projects that I’ve if I ever buy a private sale I am making sure that they’re showing their face on a zoom call so make sure that the people are real and they’ve done like interviews they’ve had press they have they’re being endorsed by other people they have activity on LinkedIn.
They have previous experience that’s also one of the reasons why I did buy ADAX is because this guy has previous experience with blockchain companies so he’s like worked as like on a board of advisors he’s also a part of a consulting like a block smart consulting group that he’s been a part of for four years and if you go to if you go like you can go look through the companies as well so you know the whole and he’s been on ICO bench and he’s he’s mostly been fintech related his entire like career it looks like.
So that’s another thing those are things I look for hope you guys got value from this video make sure to be very very [Music] smart and wise about where you put your money on small caps. I’m telling you I am actually astonished this is just one that I went through I’ve probably gone through like a dozen that I’ve found to be not real and it’s not too it doesn’t take too much time guys it takes you know sometimes it takes freaking seven minutes to see them to look into the people on LinkedIn and realize that they’re not real not everyone is extremely active on LinkedIn but if you look through their whole team.
You’re going to continue to see more and more red flags so like just make sure that you’re doing your own research before you get into it again if you can manage to not lose money in crypto you can end up likely doing really really well yeah yay swap is so that’s another thing is I so actually I have not so first of all yay swap doesn’t even show their team this is probably will be the last question I answer but this is literally the only thing that comes up on yay swap so there’s literally nothing on on yay swap.
They don’t show the team at all also if you look at their their liquidity like I sold I actually bought like 20k of yay swap and I sold all of it and by the way it doesn’t this has happened with sushi swap as well so sushi swap was created from some dude with just a twitter name online and then he ended up pulling all of his liquidity he tanked the price by like 80 percent and then it ended up getting taken over by SBF which is the owner of what’s it called FTX.
So Sam actually ended up taking it over and now they have a whole team behind it and now it’s legit so like just because that happens doesn’t mean it couldn’t couldn’t you know do better in the future but I will tell you that the volume looks does not look good on yay swap and I just don’t I just don’t like projects that don’t show their faces like why would I put my money into yay over 8x.
It just doesn’t make like when I actually looked into it I’m like you know what this does not make sense I ended up selling my yay and just moved it out of x market so I left 80 grand in eight acts and it’s still at I don’t know like 120 or something so that’s where we’re at with that guys I am not buying yay then I also this is another thing I don’t like to see which is not does not mean it’s this game either is this the Ethereum.
Oh it is listed on Cardano as well sometimes the projects will claim that they’re a Cardano based token or they’re a Solana based token when all they are is just an erc20 that’s built on Ethereum and maybe they have a plan to bridge in the future but they don’t they’re not actually they don’t even have they’re not even listed on the exchange or on the the chain that they say that they’re they’re helping so that’s another thing I’ll look at as well but this one in this case does have it’s both an erc20 and on Cardano.
Anyways thanks for watching guys hope you guys have a wonderful rest your evening and again just focus on not losing money in your life.