Today, we'll reveal the dark side of crypto that no one likes to talk about, but everyone needs to hear. According to Chainalysis, in 2024, crypto scams received at least $9.9 billion on-chain. Because for every Arbitrum or Optimism fair token distribution, there’s the infamous Squid Game Token just waiting to pull the rug. And, you know, it’s not always obvious, scams in crypto wear nice suits these days, some even speak at conferences. Today, we'll reveal the dark side of crypto that no one likes to talk about, but everyone needs to hear. According to Chainalysis, in 2024, crypto scams received at least $9.9 billion on-chain. Because for every Arbitrum or Optimism fair token distribution, there’s the infamous Squid Game Token just waiting to pull the rug. And, you know, it’s not always obvious, scams in crypto wear nice suits these days, some even speak at conferences. Chainalysis Chainalysis $X project gained 100,000 wallets in just 48 hours. Impressive? Maybe. Two weeks later, it was dead and forgotten. The holders were left staring at worthless tokens, wondering: 'What just happened?' How not to fall for the scammers' tricks, we tell in detail in our material. 'What just happened?' The Promise and Pitfalls of Airdrops The Promise and Pitfalls of Airdrops Once upon a time, a crypto airdrop was conducted completely honestly. You'd wake up, check your wallet, and find some amount of tokens. Early projects used them to build genuine communities, to reward believers before the big money rolled in. Fast-forward to today, airdrops have become the go-to bait for what some politely call "pump and dump" schemes. You’ve seen it: projects hand out free tokens, social media goes wild, prices spike, and the sell-off hits. Two weeks later, nobody remembers the project’s name. Or worse, they remember it for all the wrong reasons. Too many people focus on the hype rather than the heartbeat of the project itself. And sure, you can blame greed. But it's also about information. Spotting the difference between a real opportunity and a cleverly packaged scam isn’t easy. That’s where we’re headed next. Anatomy of a Rug Pull: Red Flags You Can Spot Early Anatomy of a Rug Pull: Red Flags You Can Spot Early The crypto scammers have gotten smarter in 2025. Their whitepapers look shinier, their websites slicker, their social media feeds busier. But under the surface, the red flags are still there, if you know what to look for. Red flags from your platform’s perspective: The biggest one is anonymous teams, where no one’s name, face, or LinkedIn ever shows up. You’re just supposed to “trust” them because they say so. In crypto, that’s rarely a good idea.
Then there's the tokenomics. Projects that allow unlimited minting or skip lock-ups altogether? Come on. That's not innovation, it's a countdown to disaster.
You'll also notice the influencer hype machine. Paid shills with no real engagement. Fake Twitter threads, Telegram groups stuffed with bots. If it looks too loud, too fast, too artificial, it probably is.
And let’s not forget the exit signs such as sudden listings on suspicious DEXs, stealth liquidity pulls, vanishing developers. By the time most people notice, it's over. The biggest one is anonymous teams, where no one’s name, face, or LinkedIn ever shows up. You’re just supposed to “trust” them because they say so. In crypto, that’s rarely a good idea. Then there's the tokenomics. Projects that allow unlimited minting or skip lock-ups altogether? Come on. That's not innovation, it's a countdown to disaster. You'll also notice the influencer hype machine. Paid shills with no real engagement. Fake Twitter threads, Telegram groups stuffed with bots. If it looks too loud, too fast, too artificial, it probably is. And let’s not forget the exit signs such as sudden listings on suspicious DEXs, stealth liquidity pulls, vanishing developers. By the time most people notice, it's over. Failed project case studiesFLOKI X This one exploded onto the scene seemingly overnight, riding the meme coin wave with aggressive social media blitzes and paid influencer hype. riding the meme coin wave with aggressive social media blitzes riding the meme coin wave with aggressive social media blitzes But peel back the layers, and there was little beneath the surface: An anonymous development team with no clear history.
No concrete roadmap.
Promises that weren’t fulfilled. An anonymous development team with no clear history. No concrete roadmap. Promises that weren’t fulfilled. The tokenomics allowed for unlimited minting, diluting value rapidly. Investors rushed in hoping for quick gains, only to watch the project implode as liquidity vanished and devs went silent. BNB42 BNB42 appeared to be the latest hot DeFi project, offering “passive income” streams that enticed users hungry for yield. The scam coin guaranteed 100% returns in 10 days, and attracted 6,000 sign-ups to the project. The scammers took off roughly $2.7 million, defrauding thousands of investors. guaranteed 100% returns in 10 days guaranteed 100% returns in 10 days The platform did not reveal how it generated returns, depending instead on the funds of new investors to compensate early entrants. When the new deposits were gone, the entire system came tumbling down. Developers vanished without a trace, and investors were stuck with worthless tokens as the promised “income” never came. SQUID Game Token This project leveraged the global hype around the Squid Game TV series to attract investors at breakneck speed. What set it apart was the trap-like smart contract design that prevented holders from selling their tokens. This honeypot mechanism ensured liquidity stayed locked while prices soared, until the devs suddenly walked away with approximately $3.38 million. devs suddenly walked away with approximately $3.38 million. devs suddenly walked away with approximately $3.38 million. With the release of the third season of this popular show, new scam coins may appear, but you have already been warned. These aren’t rare cases. They happen all the time, and they look surprisingly similar. Unfortunately, most people don’t see the signs until it’s too late. What Sustainability Looks Like in Web3 Don't worry, sustainable crypto projects exist and thrive. You just have to know what sustainability actually means in this field. The first is community retention. It’s not just about how many wallets claim an airdrop. It’s about how many stick around, participate, and care long after the free tokens land. The second is real utility. If the token only exists to be traded, that’s not utility, that’s speculation. Sustainable projects solve real problems and build real ecosystems. Third – transparency. You need to see the team, know about their experience, and see what advisors they attract. If a project goes radio silent when the market dips, that's hiding. Next, the data should be all on-chain. Look for real transaction volume, wallet activity, and developer commits. Hype is easy to fake, unlike blockchain traction. Last but not least is regulatory awareness. The projects that will survive the coming years will be the ones that take legal structures seriously. Successful case studies Arbitrum (ARB) The Arbitrum airdrop was carefully structured and well-paced. In March 2023, over 1.2 million wallets received around 1.7 billion ARB tokens, distributed over several weeks. But it wasn’t a free-for-all. The team prioritized rewarding users who had real activity on their Layer 2 network. This selective approach kept the community engaged beyond the initial hype. around 1.7 billion ARB tokens around 1.7 billion ARB tokens Developer activity remained high, and daily transaction volumes stayed solid. In a market often obsessed with quick gains, Arbitrum played the long game, and it paid off. Optimism (OP) Between mid-2022 and early 2023, roughly 26% of the total OP token supply, equivalent to several hundred million tokens, was airdropped to 248,699 user addresses actively participating in the ecosystem. The project coupled this with transparent governance processes and long-term incentive programs designed to reward holders who contributed meaningfully over time. 248,699 user addresses 248,699 user addresses This wasn’t about handing out tokens to whoever showed up first, but about fostering loyalty and steady growth. Optimism showed that thoughtful design around governance and tokenomics can create a foundation that endures beyond the buzz. Celestia (TIA) Celestia took a more developer-focused route. The devs focused on technical innovation, modular blockchain architecture, and kept their documentation public and up to date. Before launching its token in late 2023, the team maintained a vibrant, public GitHub and encouraged early adoption by builders. When the initial airdrop of around 60 million ($120 million in on-chain value) TIA tokens to 580,000 users finally dropped, it was targeted at contributors who had demonstrated ongoing engagement with the modular blockchain project. 60 million ($120 million in on-chain value) TIA tokens to 580,000 users finally dropped 60 million ($120 million in on-chain value) TIA tokens to 580,000 users finally dropped The Role of Crypto Advertising in Filtering Signal from Noise Most people only see the surface of crypto such as the launches, the influencers, the price charts, and don't want to check the inside out. Behind the project, there’s a whole other layer, and yes, advertising plays a massive role in who gets noticed and who gets ignored. Sustainable projects don’t just throw money at ads and loud promises of profit in a minute. They build communities and measure success in returning users, not just first clicks. That’s why Arbitrum and Optimism succeed, and the scammers always burn out. The next time you see a shiny new token or a viral airdrop, ask yourself: 'Who’s still going to be here in six months?' Most projects can’t pass that test. 'Who’s still going to be here in six months?'

The is an opinion piece based on the author’s POV and does not necessarily reflect the views of HackerNoon.

Chainalysis

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Why Web3 Identity Matters More Than Tokens

Web3’s Role in Building Transparent and Fair AI

From Airdrop to Exit Scam: What Makes a Crypto Project Sustainable?

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