How to Spot a Crypto Scam Token Before You Buy

Before you buy a new token, check six things: that the contract address is the real one, that it has meaningful daily trading volume, that its supply isn't concentrated in a few wallets, that you'll be able to sell it, who controls the contract, and how it's being promoted. A token that fails any one of these is risky, and one that fails two is usually not worth it. Most scams fall into a few patterns: copycat tokens, honeypots you can't sell, rug pulls where the creators pull the money, and fake sites that drain your wallet.

The six checks

1. Is it the real contract?Copycats share the name and ticker. Confirm the address on Lasso or CoinGecko and on the project's own site. See how to find a token's real contract address.
2. Does anyone trade it?Thin volume means you may not be able to sell at the price you see. Lasso warns when a coin's 24-hour volume is very low.
3. Who holds the supply?The holders tab on Solscan, Etherscan or Basescan shows the top wallets. If a few unknown wallets own most of it, they can dump on buyers.
4. Can people sell?A honeypot lets you buy but blocks selling. On the explorer, look for recent sells from many different wallets.
5. Who controls the contract?On Solana, check whether the token can still be minted or frozen by its creator. On Ethereum-style networks, an unverified contract or one the owner can change is a warning sign. Token-checking tools summarize this; treat them as a second opinion.
6. How is it promoted?Pressure to buy now, promised or guaranteed returns, paid shills and celebrity endorsements are the classic signs. The FTC notes that nobody can guarantee returns and that endorsements are easily faked. The SEC warns that memecoins promoted on social media can be used in pump-and-dump schemes, where promoters sell and the price then drops fast.

Wallet scams that target beginners

• Fake sites: look-alike Jupiter, Uniswap or wallet sites from ads and replies. Type addresses yourself or use bookmarks.
• Malicious approvals: a pop-up that asks to let a site spend your tokens. Read every request. On Ethereum-style networks, you can review and revoke old approvals with a tool like revoke.cash.
• Free airdrops: tokens or NFTs that appear in your wallet and link to a "claim" site. Ignore and hide them.
• Fake support: anyone in DMs offering help or recovery. Real support never asks for your recovery phrase.

Never type your recovery phrase into a website, and never send crypto to "verify" or "unlock" a wallet. Those requests are always scams.

If you think you've been scammed

Move what's left to a new wallet with a new recovery phrase right away, and revoke approvals on the old one. Report the scam to the FTC at ReportFraud.ftc.gov and to the FBI's Internet Crime Complaint Center (IC3) at ic3.gov. The FTC also suggests reporting to the CFTC, the SEC and the exchange you used to send the money. Be wary of anyone who then offers to recover your funds. The SEC warns that these "recovery" offers are often a second scam that asks for more money or your private key.

Check a coin on Lasso

Search any coin on Lasso to see its verified contract address, which US exchanges list it and its trading volume. Coins listed on major US exchanges have gone through those exchanges' own listing reviews, which may lower the risk of some of the scams above. A listing isn't a guarantee that a coin is safe or a good investment. Meme coins carry extra risk, so read how to buy meme coins too.