According to KookCapitalLLC, SocialFi is deemed as fundamentally flawed and quickly devolves into Ponzi schemes. The critique highlights the rapid transformation of SocialFi initiatives into unsustainable economic models, which are described as '3,3 ponzis' shortly after their launch. This view suggests caution for traders considering investments in SocialFi projects, as these platforms might not provide long-term value according to the source.

According to Phantom, understanding common cryptocurrency scams is crucial for traders to secure their investments. The resource linked by Phantom emphasizes the significance of recognizing phishing schemes, Ponzi schemes, and fake ICOs, which have been prominent in the crypto market. Traders are advised to verify sources and use secure wallets to protect their assets. Such preventive measures are essential for maintaining portfolio integrity and avoiding losses from fraudulent activities.