The cryptocurrency market has grown from a specialized technological experiment to a trillion-dollar financial ecosystem in the last ten years. Alongside that rapid expansion has been a rush of invention, but there has also been a boom in fraud. Crypto presale scams, a sophisticated kind of deception that capitalizes on investors’ fear of missing out (FOMO) and the attraction of early-stage rewards, are among the most prevalent and expensive forms of fraud that occur nowadays.
Crypto presales – also known as token pre-sales or initial coin offerings (ICOs) – promise investors the chance to “get in early” before a project launches on public exchanges. They usually make ambitious claims like “limited-time opportunity,” “100x potential,” “revolutionary technology,” and celebrity endorsements. There are dozens of reputable presales that exist only to take investor money and vanish into the blockchain hell for every one that offers true innovation.
Learning to distinguish between legitimate opportunities and frauds is more important for success in the cryptocurrency sector than completely avoiding presales. This tutorial will explain how presale scams operate, what to look for, how to thoroughly assess a project, and what tools you can use to stay safe.
A crypto presale is an early fundraising round where investors can buy tokens before they are publicly available. This model has neutralized the rise of many major cryptocurrencies – Ethereum, Solana, and Cardano all started with presales that rewarded early believers with astronomical returns.
However, the same features that make presales attractive – high growth potential, low entry price, and minimal regulation – also make them ideal vehicles for fraud. Because presales often occur before a project has a working product or regulatory oversight, scammers can fabricate entire projects out of thin air and use clever marketing to lure investors, leading to what is commonly known as a presale scam
There’s a clear reason for the appeal: early investors in Ethereum’s 2014 presale paid about $0.30 per ETH. Today, that same token trades for hundreds of dollars. But for every success story, there are countless scams – some stealing millions in minutes.
Presale scams are not random acts of manipulation – they are carefully planned schemes. Here’s how they typically unfold :
Scammers create polished websites, detailed whitepapers, and slick marketing campaigns. They often use buzzwords like “next-generation,” “AI-powered,” or “DeFi revolution” to sound innovative. Some even fabricate fake team profiles with stolen LinkedIn photos or impersonate real people.
The goal is to trigger FOMO. Paid influencers, bots, and fake community accounts flood social media with hype. Forums and Telegram groups buzz with excitement. The project may claim to be backed by well-known investors or “partnered” with big exchanges – often without proof.
Investors are urged to send crypto (usually ETH, BNB, or USDT) to a wallet address to buy tokens. Often, the sale is structured with fake urgency – limited supply, countdown timers, or “exclusive access.”
Once the scammers collect enough funds, they vanish. Websites disappear, social media accounts are deleted, and investors are left holding worthless tokens – if they receive any at all.
This pattern has repeated in hundreds of scams, from the infamous Squid Game Token to countless “DeFi yield farming” projects that were rug-pulled within weeks.
Trust starts with transparency. If the people behind a crypto project hide their real identities, use fake names, or you can’t find any proof of who they are, consider it a warning sign. Real and trustworthy projects usually show their team openly – with real LinkedIn profiles, public interviews, and examples of previous work.
Beware of phrases like “guaranteed 1000% returns,” “no risk,” or “next Bitcoin.” Legitimate projects never guarantee profits – they highlight potential based on technology and market conditions.
A trustworthy crypto presale will always get its smart contract checked by a well-known security company like CertiK or Hacken. If there’s no audit available – or even worse, the audit link is fake – it’s a big warning sign that the project might not be safe.
A whitepaper is like a detailed guide that explains how the project works and how it plans to grow. If it’s full of confusing words, doesn’t clearly explain anything, or looks copied from another project, it’s best to avoid investing.
Scammers often pretend they’re connected with big companies, crypto exchanges, or famous investors. Always check these claims by visiting the official websites or social media pages of those companies to see if the partnership is real.
See a project with 10,000 Telegram members or 100,000 Twitter followers? Don’t let that fool you. Many scams buy fake followers or use bots to make their project look popular. What really matters is how real people are interacting – the quality of conversations, not just the number of followers.
Squid Game Token (2021)
Marketed as a “play-to-earn” token inspired by the hit Netflix show, Squid Game Token skyrocketed over 75,000%. But investors quickly learned they couldn’t sell. Days later, the developers disappeared with more than $3 million.
DeFi100 Rug Pull
DeFi100 told investors they could make big profits through yield farming. The project collected over $32 million but then disappeared overnight, leaving a message that mocked investors: “We scammed you, and you can’t do anything about it.
Bitconnect (2017)
Although Bitconnect wasn’t a presale scam, it was a Ponzi scheme that showed how hype and big promises can trick even experienced investors. The project eventually collapsed, causing billions in losses.
These examples show that scams can look completely real at first. Even skilled investors have been fooled by professional-looking websites and convincing marketing.
Here’s a professional-grade due diligence checklist:
Etherscan (for Ethereum) and BscScan (for Binance Smart Chain) are free blockchain explorers that let you check a project’s smart contract. You can see how the contract is built, who created it, and where funds are moving. If large amounts are going to unknown wallets, that’s a red flag. Always review contract details here before you invest.
CertiK and Hacken are trusted platforms that audit crypto smart contracts to detect security risks. A project with a verified audit is usually much safer than one without. Reading the audit summary helps you see if the project follows best practices or if there are any red flags to consider.
CoinGecko and CoinMarketCap track thousands of crypto projects and show key data like price, trading volume, and official links. If a presale is listed here, it’s often a sign of basic credibility. Always check that the links match the project’s official channels — mismatched or missing info could signal a scam.
Scam Sniffer and RugDoc help you quickly find out if a project has been reported as suspicious. Many investors use them to rule out risky presales before investing. If a project appears on one of these scam lists, it’s safest to avoid it entirely.
DeBank and Zapper show how active a project’s ecosystem is and whether it has enough liquidity for trading. Low liquidity or minimal activity can be a sign of weakness. These tools help you see how real investors are interacting with the project in real time.
Crypto presales are risky, so only use money you’re comfortable losing. Treat these investments like high-risk opportunities – the rewards can be big, but so can the losses. If losing that amount would cause financial problems, it’s better not to invest it.
A project without a security audit or a known team is a major red flag. Audits help confirm the code is safe, and team transparency builds trust. If you can’t verify either, there’s a higher chance the project could be a scam.
Scammers often spread false hype on platforms like Twitter or Telegram. Don’t trust claims of partnerships or endorsements without proof. Always visit the official website or verified accounts to confirm the information before investing.
Being part of a project’s community helps you understand how the team communicates and operates. Join their Telegram or Discord and see how they respond to questions. A transparent and active community is usually a good sign.
Putting all your money into one presale is too risky. Spread your investments across several projects to reduce the impact of potential losses. Even if one fails, others may succeed and balance out your portfolio.
If you realize you’ve been scammed, take action as quickly as possible. Contact your country’s cybercrime unit or online fraud department and provide them with all the details, including wallet addresses and transaction records. The sooner you report it, the better the chances of authorities tracing the funds or stopping further fraud.
If you send funds from a centralized exchange, contact their support team right away. They may be able to freeze suspicious accounts, block transactions, or help with the investigation. Quick communication can sometimes prevent further losses.
If you’ve interacted with a suspicious smart contract, revoke any permissions you’ve granted using a tool like Revoke.cash. This prevents scammers from continuing to access your funds or tokens. It’s a simple step that can protect you from additional losses.
Once you’ve taken action, warn others by sharing your story on social media, crypto forums, or community groups. Public awareness can stop others from falling for the same scam and helps build a safer crypto environment for everyone.
Crypto presales are exciting but also risky. While they can offer big rewards, they also come with serious risks. The best way to protect yourself from scams isn’t luck — it’s by learning, staying cautious, and carefully checking every detail before you invest to avoid falling victim to a presale scam.
Always remember this rule: if something sounds too good to be true, it probably is. With the right research, the right tools, and a careful approach, you can explore presales safely and might even find a great project before everyone else does, without the risk of encountering a presale scam.
About the Author Leo Brooks
