What is the difference between a scam and a non-scam cryptocurrency?

ANSWER:

The difference between a scam cryptocurrency and a legitimate one typically revolves around intent, transparency, and functionality. Here are some key distinctions:

### Scam Cryptocurrency:

1. **Lack of Transparency**: Scams often have vague or nonexistent information about the team, project goals, or technology.

2. **Unrealistic Promises**: They frequently make exaggerated claims about returns or potential, appealing to greed.

3. **Poor or No Development**: Scams usually lack a working product or credible development roadmap.

4. **High Pressure Sales Tactics**: They may use aggressive marketing techniques, urging quick investment.

5. **Exit Scams**: Many scams disappear after attracting enough investment, leaving holders with worthless tokens.

### Legitimate Cryptocurrency:

1. **Transparency**: Legitimate projects usually provide detailed information about the team, project goals, and technology.

2. **Real Use Cases**: They typically have a defined purpose, solving real problems or offering unique features.

3. **Active Development**: Ongoing updates, community engagement, and a clear roadmap indicate a committed team.

4. **Regulatory Compliance**: Many legitimate cryptocurrencies comply with laws and regulations, enhancing trust.

5. **Community Support**: They often have active communities, fostering discussion, support, and improvement.

When evaluating a cryptocurrency, it's essential to conduct thorough research, looking into the project's fundamentals, team background, and community feedback.