Newcomers to Web3 project evaluation should be wary of four major risks: outdated or false demand narratives, team and investor opacity, token economic imbalance, and compliance issues. Projects that are more efficient off-blockchain are often unreliable. Be cautious of anonymous teams, fake endorsements, and ghost VCs. Watch for token control by teams, lack of use cases, and "air tokens." Compliance risks include illegal fundraising, IP infringement, or evading major regulatory oversight. A systematic review of narratives, teams, tokens, and compliance can reduce the risk of pitfalls.