Gandalfs Scam Scope

Updated: Jan 16

Here are steps for everyone to read how to avoid and how to protect against non-legit companies.

Let's start with the basics of the domains and websites. If you are beginning to explore cryptocurrencies and the crypto world, these few observations below are critical.

If the website promises enormous and suspiciously high returns to investment, a 1% daily return or annual return is over 20%. That should raise the alarm clock immediately.

Check out if there is an ABOUT US section on their page. Is there any contact information or any links to their Twitter, Linkedin, or other social media pages? A legitimate company should have excellent and very accurate contact info, updated almost daily.


Where did you hear about the website? Did they approach you first with unsolicited email or from social media? Those channels are well known for those culprits to lure new customers to their web.

Are they using celebrities in their advertisements? Sometimes they try to get so-called credibility with stars in their campaigns to build up their credibility.

Look carefully at their content on the website. Is there something that seems to be not correct? Trust your feelings. Many times those feelings might save you a few hundred bucks and a terrible headache.

Search with Google, the company for independent reviews. Are there any negative reviews? Are there any thoughts? Is there any track record of their doings in the past?

Is there any lousy grammar, strange phrasing, or simple spelling mistakes on the website? If there is, it doesn't necessarily mean they are not legitimate, but it gives you proceed with a caution sign.

Check the registered owner of the website or domain. Is there a hidden owner behind it? And when the website was registered? All these details give you signs to avoid it or to ask for more information.

See what kind of links they have on their website. Are there old, legitimate companies linked to their website, or not? If there are well known and trusted companies linked, it should be a good sign in general.

People behind the scams are getting better and better every day, so the best advice to you is to think with common sense overall. If something sounds too good to be true, it usually is.

This list is minimal and not complete at all. Please analyze everything, and share your knowledge with all the cryptocurrency society, ( you can also sign up here at cryptogandalf.com, and we get your feedback to the right channels and forums.)

We will start to update Gandalfs Blacklist here, a list of known and exposed scams. Please help us get the section better!


Next, I describe to you the most common cryptocurrency scam themes:

Ponzi or Pyramid scene


First is an alarmingly effective and viral scam that gets in new investors to promise abnormal high returns and profits. Here I write how it works: a spokesman or promoter convinces people to invest in their Ponzi scheme. The first time these initial investors get back what they promised to, but the payouts are actually from newer investors' money they have deposited. Satisfied with the knowledge that the scheme is legit, investors who received promised return throw more money into the project and ask others to do the same.

Eventually, the scheme collapses when the project cash flow turns negative or becomes too hard to get new investors. These pyramid schemes are old and can be very easy to see. But we are too greedy sometimes and believe the unbelievable.

Mining Scam

I want to mention this scam here; even my last blog post revealed quite a simple way to see its truth.

There are so many cryptocurrency mining scams on the internet, and they are also alarmingly increasing in volume and at the same time as more and more people get to know of this new area of industry. Simply put, most of them are covers for Ponzi scams and only make to take all your money since day one.

Companies have sugarcoated the industry profits. It can be tough to compare or calculate the real profits behind all those fees, which are changing. It still is an intriguing and fantastic business, and it really can be quite profitable if done right. The cloud mining section involves quite a lot of mathematics, and Gandalf is more than happy to help you with any inquiries. Please send an email or call.

ICO ( initial coin offering) scams

Maybe the most scammed area of cryptocurrency frauds. Everyone knows what the ICO stands for, right?

Okay, so I put it shortly. In 2018 ICOs raised 7.8 billion dollars in volume. 1253 completed ICOs, and average coin raised 11.52 million dollars in the year 2018. 2019 numbers are yet not accurate enough to publish.


There's plenty of room to fake ICOs, and plenty of space for them to do it. It can be any project which has an excellent idea and road map of some kind. Mostly the companies or foundations who invest in ICOs are not so familiar with all crypto schemes, and it leaves a lot of space to con artists and likes to play. If you wanted to read about scam ICOs last year, google ICO SCAM 2019, and you will find plenty of stories. No point for me to write them here.

And the list goes on, but I think the above are the most common ones around, and again, send me any feedback, and ill get back to you. Let's do good together and fight the villains in the crypto business.

What wise crypto investors have taught me before is very simple, dont put all your investment to one basket, but divide them between many. That way you just cannot lose everything with one bad choice. Sound fair enough to me , right?

You can do a lot more when safeguarding your privacy on the net. Remember to use 2-factor authentication, whenever it is possible. Use always different password on any website you sign up or register. You cannot be too careful out there.

Trust no one.


Please share this article, if you think that its valuable to other crypto minded people.


Related Posts

See All