all crypto is rife with red flags.
Humans have been looking for ways to screw each other over since the dawn of time. If you mint some brass coins and say they are gold, that just makes you a loar. It doesn't mean there's anything wrong with gold.
If the fraud is rampant enough, then it is a problem with gold: it's too risky to invest in.
Crypto is nothing special in any respect except crime. Web 3.0 is basically blockchain re-discovering how finance works and why financial regulation is a thing.
Coins leveraging coins and pegged to other coins and hedged by yet another coin... None of it reflects a solid foundation and the fact that, for a time, enough people were fooled does not a revolution make.