Crypto space is witnessing lots of scams but this does not mean whole industry needs to be labelled as cheats. Actually, it displays the negligence of people, who ignore to spend time in performing research of the current revolution. Over years, Bitcoin is the hottest crypto-currency in the world and is attracting hackers and scammers.
Bitcoin scam shows up basically every day. Criminal minded people never change their winning tactics. Some of the common crypto scams that everyone needs to be familiar with are given below.
Fake ICOs or Initial Coin Offerings are common and effective scamming technique. Creating a marketing hype by fabricating a fake ICO to encourage people buy them and kick-start a company. ICOs are great aspect but often misused.
New investors dream to gain hundred percent profit in weeks holding worthless ICO coins. Their ignorance lead them to crypto scam.
Signs of fake ICOs
- Unusual haste in execution
- Copied whitepaper
- Mismatch of said and written words
- Half team is anonymous
- No roadmap
Be cautious about token sales or ICO scams.
Exchanges, which magical sprang up like pop up clown and started bragging. You need to stay away from them because if you get persuaded to make a deposit then there is no going back. You will not get your money back, if the aim of that exchange is malicious.
In addition, even the exchanges that started well can certainly vanish with your funds because they fail to balance and survive in the market.
You will find many android wallets launched. Never try to pick a wallet randomly because the chances they are fake is more making you lose you deposit. The wallets may claim to offer control on your seeds and funds but never fall to such promises without proper research. It is an easy way to con people. The wallets take your personal key and hack your Bitcoins.
Ponzi scheme or pyramid
A crypto project, which actively encourage new investor’s recruitment to maximize profits then it is Ponzi scheme. In this pyramid scheme, the one entering later in the system will get scammed. Absurd returns are promised, which clearly indicates Ponzi scheme.
Cryptosphere scammers try to gain your sensitive details like seed keys, or username somehow. Basically, they use two methods like – fake airdrops or punycode.
Pump and dump groups
There are many crypto groups comprising of 40,000-100,000 members. They don’t discuss or chit-chat but these groups are tools used to influence altcoins price having low market caps. People, who act rapidly can take advantage and those who delay suffer from plummeting rates in minutes.
Most sophisticated scamming technique, fake Facebook and Twitter accounts are created to impersonate real legitimate project or person responsible. They act like CEO of Bitcoin and announce airdrops, which is not true. Scammers have even stared impersonating crypto-currency support staff for ripping people of their crypto currencies.
Scams is not new to any industry. Crytpto is an open source decentralized concept, which is easy to imitate. Trust the legitimate information sources and get self-educated by trusted sources to avoid crypto scams.