Cryptocurrencies often promise decentralization and financial freedom, but many projects fall short, becoming breeding grounds for scams. Lack of regulation allows for deceptive ICOs, pump-and-dump schemes, and rug pulls, where developers vanish with investors' money. The technological complexity makes it hard for average users to discern legitimate projects from frauds. Plus, the anonymous nature of crypto transactions can shield malicious actors from accountability. Always do ample research and remain skeptical of too-good-to-be-true offers in this volatile space.