The Psychology of a Scam: Why We Fall for High-Risk Tokens

We like to think we are too smart to be scammed. Yet, high-risk tokens continue to drain millions from investors every year. Why? Because they don't hack our wallets, they hack our psychology.

The FOMO Trap High-risk tokens are designed to trigger a "Fear Of Missing Out." When you see a chart going vertical and bots spamming "To the Moon," your brain shuts down its risk assessment centers. The guide from Cwallet Learn highlights that scammers often use fake social proof—fabricated screenshots and bot comments—to make a project look legitimate.

Anatomy of a High-Risk Token Not all volatile tokens are scams, but dangerous ones share common DNA:

The Ghost Team: Anonymous founders with no track record.

The Whitepaper Void: A project purpose that is vague or purely buzzwords.

Liquidity Traps: You can buy, but you can't sell.

Staying Safe in the Wild West The only way to survive is to verify everything. Never trust a screenshot. Check the contract on a blockchain explorer. Use platforms like Cwallet that prioritize asset visibility and security, ensuring you always know where your funds are.

Want the full checklist for vetting tokens?

Read the in-depth guide on the official Cwallet Blog: https://learn.cwallet.com/what-you-need-to-know-about-high-risk-tokens/