Cryptocurrencies promise revolutionary financial freedom, but many are plagued by scams. Lack of regulation allows bad actors to create tokens with little to no intrinsic value, preying on investor greed and FOMO. Pump-and-dump schemes manipulate prices, leaving naive investors with losses. Whitepapers often lack transparency, masking weak fundamentals. The complexity and anonymity of blockchain tech can obscure fraudulent activities, making due diligence challenging. Always research thoroughly before investing; not all that glitters is digital gold.