The world of cryptocurrency is rife with innovation, but unfortunately, it also attracts scammers. A recent incident involving Humanized AI, a project promising to revolutionize AI’s understanding of human perception, serves as a stark reminder for investors to be cautious.
Humanized AI offered HMZ tokens to users in exchange for their contribution to the project’s “unique information-processing efforts.” However, after raising a staggering $665,000 worth of Ethereum (ETH) over a single month, the project abruptly disappeared. All social media accounts went dark, leaving investors with nothing but empty promises.
This incident was flagged as a scam by Cyvers, a cybersecurity platform. The sudden shutdown and lack of communication are major red flags, highlighting the importance of thorough due diligence before investing in any crypto project.
How to Avoid Crypto & Web3 Scams
- Research the Team: Look for a team with experience and a proven track record in the field. Check their social media presence and online reputation.
- Scrutinize the Whitepaper: This document should clearly outline the project’s goals, technology, and tokenomics. Be wary of vague or overly technical language.
- Independent Reviews: Look for unbiased reviews from reputable sources before investing.
- Promises vs. Progress: Don’t be swayed by grand promises. Look for concrete evidence of the project’s progress and development.
- Invest What You Can Afford to Lose: The cryptocurrency market is inherently volatile. Only invest what you’re comfortable potentially losing.
Meanwhile, checkout our article on how to safeguard your crypto assets.
