According to ZachXBT on January 11, 2025, a useful shortcut for due diligence on AI projects is to verify whether the contract address is prominently placed in the bio or pinned tweets. This can be an indicator of fraudulent activity, as legitimate projects tend to maintain a professional appearance without overemphasizing their contract details. This practice aligns with the broader trend of due diligence in cryptocurrency markets where transparency and credibility are critical in maintaining investor trust.

From a trading perspective, identifying potentially fraudulent projects early can save investors from significant losses. On-chain data analysis often reveals that projects with prominently displayed contract addresses may experience unusually high trading volumes that do not correspond to organic growth. For instance, if a project's trading volume spikes significantly without a corresponding increase in market capitalization or user engagement, it might indicate manipulation or insider trading. Thus, traders should be wary of projects that heavily promote their contract addresses as it often correlates with pump-and-dump schemes.

Technical indicators such as Relative Strength Index (RSI) and Moving Averages (MA) can also provide insight into the legitimacy of these projects. For example, if an AI project's RSI is consistently in the overbought region while its contract address is prominently displayed, this could further suggest that the asset is being artificially inflated. Additionally, analyzing market depth data can help traders assess the liquidity of these assets. Projects with shallow order books and large spreads are typical red flags, as they indicate that trading volumes might be inflated by a small number of transactions. By utilizing these analytical tools, traders can better navigate the risks associated with AI projects that exhibit signs of potential fraud.