Cryptocurrency is an emerging technology that hopes to replace traditional money, and its major appeal is that it's decentralized, meaning there's no central authority overseeing the virtual currency, and everything boils down to the fact that you have total control over your money. Two people can send money to themselves anywhere in the world without the bank or any third party knowing about it
And one thing is that there is a technology that powers the cryptocurrency. It's called the blockchain, which is an online database that is distributed across different computers that are part of that network
Merriam-Webster defines a scam as a fraudulent or deceptive act or operation.
The valuation for cryptocurrency is very high, which is why many people are keeping their eyes on it and so many buzzes are surrounding it. However, it also serves as a fertile ground for scammers. This is why the word scam is attached to cryptocurrency
So a crypto scam is a deceptive act or fraudulent operation perpetrated to lure people into losing their asset, or rather, fall into great loss from buying the wrong asset at a particular time
In most cases, the fraudsters use different techniques to get the attention of people, and in scams, it's called a confidence trick
It would be very difficult for anyone to fall victim to a scam if he didn't believe the story behind it. If I tell you I can double your ETH investment in a week on the platform I create, you won't invest if you don't believe it's possible or if you are not convinced enough to take the risk, so what these people do is that they use the tactics of confidence risk to buy the heart of their target
So, what is confidence risk?
It's a strategy put in place to defraud a person or group of people after gaining their trust. It's an intelligent way of exploiting others through fraudulent conduct. This so-called intelligent strategy was used in many ways to defraud countless people. Just to cut the story short, let me briefly mention some scams I've seen and heard
Fake crypto investment where people invest and the people in charge take to their heels
Fake ICO, IEO, or whatever name is given to it. Once you buy the coin and they've generated millions of dollars, they stop the promotion and everything listed in their roadmap and white paper, and the market crashes.
Various wallets are created to store people's funds in disguise, and before you say jack, the app would start crashing on every device. Even the world's best developers working with one of the best tech companies in the world cannot bring the app back to life, no matter how many logcat reports are sent to them.
Malware is designed to get access to people's information, and once they have the way, hmm! It would be a different story by then.
Defi scam where platforms users/ investors are lured into lending their assets and they find it difficult to retrieve
What about the non-fungible token scam? Some people once called it non-refundable token because of the scam some communities had used it for.
I will not forget the crypto giveaway scam as well. This happens most often on Telegram, Twitter, Facebook, and other prominent social media. The scammers would impersonate a world-known figure and set up a fake giveaway to con people into thinking that the figure behind the account is doing a giveaway. You would need to send a token before they release the giveaway. If you do, your money is gone.
Is pump and dump also among crypto scams? Many people might not understand, but certainly it is. I know about a live example where a crypto mongue created a Twitter account just to manipulate the price of cryptocurrency. Pump and dump can cut the price of crypto in half within a few hours. More and more crypto scams emerge all the time. In 2017, a cybersecurity pioneer who created the MCAFEE ANTIVIRUS named John McAfee was alleged of involvement in pump and dump. Lol. We can get more of this information on YouTube. Just type McAfee the pump and dump man. You would get a lot of information concerning the story and how he defended himself, saying the media easily corrupts people's minds.
Let's see what Bitsane did
When the platform was booming and many people didn't see the cloud falling gradually.
Coming up with a fantastic exchange was a good thing for every user because the exchange proved to be reliable and accountable. Bitsane was a spot trading exchange for bitcoin, Ethereum, Ripple, and other popular coins launched in November 2016. The platform had up to 240 thousand users, with 25 thousand daily transactions, which amounts to around $6 million in trading volume. This exchange happens to be the first to have a USDT/EURO pair, and also the first platform to list ripple
The scam started when users found it difficult to access their accounts. While some were able to access it, transactions became difficult, and withdrawing from every account was disabled. They only claimed it was a technical issue, not knowing that they'd already had their plans from day 1 of creating the platform. The most surprising thing was that they planned this scam for years, and people gained their full trust
After they brought down almost every social media account attached to them, it was difficult for the victims to locate them. Many people claimed they lost funds, between $5k and $150k
After many people discovered that they'd been scammed, a group was created on Facebook named Bitsane.com Scam Victims. Here, many victims discussed how they could get back their money. The intelligent part the Bitsane platform/crypto played was that they also used their smartness to scam people of other coins like ripple, doge, and so on
The scam was a huge loss to the victims. Bitsane perpetrated many scams using their platform. They do away with people's investment in ripple, doge, bitcoin, and so on, and also render Bitsane coin useless to those that hold it after they've had their huge profit
Crypto scam has affected the crypto world enormously. There's limited trust, and it's all because of the fear of the unknown. Cryptocurrency is very interesting, but the scam can be very disheartening. Let's be careful with projects we are skeptical about
Long live crypto.
Thanks for reading.
This is ckole the laughing gas
One love
Great one here
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