The ULTIMATE Guide to Crypto Auditing

I was reading a study that said that 38% of crypto investors have lost more money than they've gained. Actually, I think that number is probably pretty low. You might be watching this and thinking, hey, I think I've lost more money in crypto than I gained. Is it worth sticking around? Should I stay? I just want to talk about some of the red flags that I've seen over the past couple of years. Again, we've seen a lot of projects that have fallen apart, rug pulled. I just want to point out some red flags that you can look for. The goal is for you to make progress financially, and you can't do that if you're losing money every second investment. One of the biggest problems is just straight up rug pulls where the founders just take the money and they run away. You never hear from them again. And the number one way to stay away from rug pulls is to stop getting into things pre-sale. So you have to decide where that risk reward ratio is for you. But if you want to avoid rug pulls, just wait, get a couple of months of history, and the chances of a rug pull are way less. If you are going to get in pre-sale or something like that, then make sure that the team is docs. Make sure there's something there where if they just run off, there's some way to do something to them. If they have KYC with a reputable company, I recently got in the pre-sale for Kirk, but I was willing to do that because I actually went to Malaysia, met the team, know where they live, things like that. Another thing you want to look for are potential vulnerabilities in the code. This used to be pretty prevalent, but there used to be these honey pots where you could put money into the smart contract, but you couldn't take it out. So I usually like to see that they have a code audit from someone reputable, and I know they've checked for things like it being a honey pot. Aside from straight-up rug pulls, you can also lose your money, and this is probably more common, just by the project not working out, the project falling apart for one reason or another. And the number one thing I'm looking for there is, is there actual utility in this project? Where does the revenue come from? If you're promising to pay out, then that money needs to come from somewhere. What we've seen with so many projects in this space is it really is just ponzinomics. If a project fails to solve a real-world problem, and I don't see where the revenue comes from, I'm a little hesitant on it. Another thing that I always look at is the community. Two things you can look out for in a community, first off, is their fate engagement. That's a huge red flag. You can pay money for YouTube subscribers, you can pay money for Discord members. I see Twitter accounts with 100,000 followers who get one like on their tweet. I know they paid for those, and that's a huge red flag. It's just dishonesty. Additionally, I look out for kind of cult-like behavior. So if you come in and start asking some questions, legitimate investor questions. Where does the revenue come from? It's not fun, okay? That's just a question. But if the community starts making memes about you and attacks you for asking questions like that, huge red flag. Not only why can they not come up with answers to the questions, but also if that's how they treat potential investors, I know it's not going to work out long-term. These are a few of the red flags I look out for. Please comment down below what are your biggest red flags in a project. If you found this helpful, like, subscribe. I appreciate you guys, and have a great rest of your day.