According to CoinGecko, 98% of new market participants are unable to identify fraudulent tokens.
98% of new traders don’t know how to spot a scam token — don’t be one of them. Read this ? pic.twitter.com/EC2kK4AYis
— GeckoTerminal (@GeckoTerminal) June 25, 2025
Experts first advised examining the distribution of tokens among holders:
- A “red flag” is when more than 50% of the supply is concentrated in the hands of the top 10 wallets;
- exceptions include exchange addresses, DEX, and liquidity lockers.
It is also a cause for concern if the total number of asset holders is consistently decreasing. This indicates a decline in interest in the project, CoinGecko noted.
Analysts also highlighted three signs of deception:
- honeypot — tokens that cannot be sold after purchase;
- hidden fees on buying and selling that “eat into” profits;
- developers with a history of fraudulent schemes such as rug pulls.
CoinGecko described the liquidity pool as a “key indicator.” Locked value reduces the risk of creators suddenly withdrawing funds.
The age of the token is also important, experts emphasized. The newer the project, the higher the likelihood of fraud. Most scams occur with newly launched tokens.
CoinGecko noted that the GT Score aids in initial analysis, but investors need to conduct their own research.
Earlier in 2025, analysts from the platform recorded the demise of 50% of crypto assets in the first quarter.