Avoiding Cryptocurrency scams
An average of about $9 million a day is spent on digital currencies. At the end of 2018, the losses from these scams amounted to $25.3 Billion. For this reason, we suggest you read the article we wrote about Avoiding Cryptocurrency scams to the end to be safe from these fraudsters.
One of the most serious reasons for the spread of fraud in the digital currency space is the lack of awareness of privacy and security practices among users of this technology. In the meantime, there are always profiteers who exploit sudden people by scams in many different cases.
Therefore, with the aim of disseminating awareness, Antidolos should comprehensively examine and introduce the details of privacy, investment risks, and fraud prevention in the world of digital currencies.
Due to the legal ambiguities and the unclear position of the legislatures. And the many questions that arise for newcomers or activists in this field, we decided to collect the latest comments and positions of officials in Cryptocurrency scams to make a better decision. Furthermore, Help activists and investors become more aware.
Ponzi and Pyramidal Cryptocurrency systems
Pyramid schemes and the Ponzi scheme are fraudulent ways of investing in which investors are guaranteed the highest interest rate with the least risk.
The scheme works in such a way that it guarantees the return on the Best Cryptocurrency Investment of older people by receiving fiat money of Cryptocurrency from newer investors.
Suppose a company is set up that promises guaranteed and extraordinary profits to the people through extensive publicity. The company can be product-free or introduce one or more products. In the first level, the owner determines the minimum amount for investors to enter.
An example of Ponzi scam
It indicates that customers can become members of the plan by paying $100 a month (or purchasing a hypothetical product).
Then they have to make huge profits by attracting new members. Furthermore. the plan’s basis is that the scam company withdraws its profits and gives a guaranteed profit to the participants. But, no business is done. In the first days of the company, profits are regularly and also accurately distributed to investors. This allows customers to introduce the design to their friends and acquaintances.
The scheme eventually reaches a saturation that no other Crypto investors are attracted to due to the lack of a functional product.
In this way, the previous investors will no longer receive money, and the plan will collapse completely. Therefore, Antidolos suggest that you do not join any of these communities to Avoiding Cryptocurrency scams.
Bitconnect
But you may ask, how does this Cryptocurrency scam work in a platform based on Digital Currency? For an answer, it is better to look at an example. Yet CONNECT has been Ponzi’s most famous and most significant digital currency scam to date. Few could say for sure that the project was a scam: Bitconnect was a digital currency investing and lending platform that many warned of at the height of its existence. But How to identify a Crypto scam?
Many investors have invested millions of dollars in the platform and its digital currency, the BCC, in the hope of making huge profits overnight.
In Jan 2018, Bitconnect collapsed after regulators investigated its activities and DDoS attacks. After the collapse of Bitconnect. Its digital currency, BCC, lost more than 90% of its value in less than a few hours.
Mining scams
For mining digital currencies, due to the possibility of earning money from this space. Abuses and scams have been formed a lot and are increasing day by day.
This has become a significant problem in developed countries such as Britain and Japan. Furthermore, in recent years, the value and importance of digital currencies have increased dramatically. With the increase in the price of these currencies like Bitcoin (BTC) in global markets, many people are showing interest in investing.
There is another way to earn digital currencies called mining that people can use to create powerful coins like BTC using powerful hardware.
There are 3 types of Cryptocurrency scams
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Cryptojacking
In Cryptojacking, profiteers, by using code in a particular site, use the computer power of visitors to that site for underground mining and profit.
Telegram mining or bitcoin mining robots: The user becomes a member of the robot and receives some diamonds as a gift to start work. With those diamonds, virtual mining devices can be purchased in the robot to start bitcoin mining. You will have to buy more diamonds to get more diamonds. These robots don’t have any mining and only force users to pay BTC or ETH to buy more diamonds.
Cloud mining: This method is not a problem in itself, but cloud mining’s opacity has provided a platform for fraud. A company can receive people’s money under the pretext of selling mining processing power and pay the user a small amount of Ether or any other digital currency only monthly without any mining.
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Malware, phishing
When discussing digital assets and Avoiding Cryptocurrency scams. You should be aware that you are responsible for protecting your assets.
In the current situation, no institution is responsible for the theft of digital currencies. One of the most common methods of stealing digital assets is the use of malware and hacking.
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False monetization systems
Another example of digital currency abuse is the false systems of monetizing the digital currency market.
Many rating and review sites drive users to monetize digital currencies through deceptive advertising and viral marketing. But in fact, more than 80% of users of these systems will not have any revenue.
Click sites, free bitcoin sites, and mobile mining software are examples of these fake monetization systems. The profitability of these systems is usually meager, and the minimum withdrawal amount is very high.
Many people can’t increase their inventory to this amount. There have also been many cases of non-settlement with eligible users.
Top example for Avoiding Cryptocurrency scams
Faucets are free and odds-based digital currency systems. And how these sites work is that after registering on the site, you click on a button and receive some free bitcoins according to the odds and the displayed number.
In Faucets, you can usually try your luck every hour. The most famous and most visited Bitcoin Faucet is the FreeBitco. Furthermore, in this Faucet, you can try your luck every hour. These sites will have no benefit other than emptying people’s pockets.
Decentralized exchanges
Decentralized exchanges like Uniswap are exchanges that use blockchain and decentralized solutions for transactions instead of centralized servers. The four basic disciplines in each exchange can be categorized as follows.
- Deposited funds
- Order registration offices
- Matching orders
- Exchange of assets
To create a decentralized exchange or DEX. In fact, all four of these factors must be implemented in a decentralized manner.
The advantage of decentralized exchanges over their centralized counterparts is the lack of access and control centers for users’ assets. Therefore, the possibility of hacking and losing assets by hacker attacks in this type of exchange is a low probability option.
Decentralized trading is not necessarily a reason for global decentralization in an exchange. And in some decentralized exchanges, only transactional operations are performed in a decentralized manner. And registration and transaction can be done in a centralized manner.
Anyway, the decentralized exchange IDEX has blocked IPs’ entry in some areas, including New York City and several other places in the world. Also, this has called into question the decentralized nature of these exchanges. There is also a concern for these exchanges that they will ban the users of these sites.
Scam ICO and IEO
Crowdfunding shapes the financial future of the world. The investment is no longer limit to a specific group. Besides, launching a project no longer means exceeding Venture Capital investment requirements.
Currently, there are several platforms that users can use to make their dreams come true. Also, one of these opportunities is ICO.
In Blockchain, crowdfunding has become very common. Also, these campaigns often take the form of ICO or initial public offerings of coins in the digital currency market. Including offering tokens in exchange for Bitcoin, XRP, other digital currencies, or fiat money.
ICOs have gained tremendous popularity in 2017 and 2018. However, we must also consider the negative aspects of the case. Unfortunately, a significant portion of ICOs in recent years have been scams that we want to Expose one of the Cryptocurrency Scam.
This scam is just one of the scams in this field. To Avoiding Cryptocurrency scams, it is better to search for some other examples yourself.
Top famous ICO scam
One of the most famous ICO scams in 2017 is related to Confido. Besides, Confido managed to raise $375,000 in Nov 2017 using a public offering of tokens and suddenly disappeared.
After the news of the token scam broke, its value fell in the market. The price of this token in the market increased from $0.6 to $0.1 in 2 hours. A few hours later, in the second phase of the fall, its value fell below one cent.
What is Antidolos Media?
The end of the Antidolos effort is to help users protect their assets. In fact, we are also pleased that the cryptocurrency exchange platform is secure. Besides, that is why we have become a nightmare for swindlers like Weblock (WON) scam.
Dear user, thank you for reading the article we wrote about Avoiding Cryptocurrency scams. Furthermore, we suggest you read our other articles about fighting fraudsters so that you do not fall into the trap of fraudsters.