#cryptoscams #crypto2023 #cryptocurrency #binancenigeriascam

Ways to Spot and Avoid #crypto scams in 2023

 

The Cryptocurrency industry is arguably the fastest-growing industry globally. As mentioned in one of my articles, the cryptocurrency  Alpha Coin ‘Bitcoin’ became the first asset to hit the trillion dollar market cap within two decades compared to the likes of Apple, Google, and Microsoft. Bitcoin hit the $1 trillion dollar mark in 12 years, showing the massive opportunity and potential of the digital assets market.

This and many more have been the main reason for a consistent and continuous influx of new individuals and organizations into the cryptocurrency space, as it is still in its growing phase, and there are still lots of opportunities to get a hold of.

As with any other industry or asset, cryptocurrency has faced its fair share of challenges. We will discuss one of the most consistent challenges among them: crypto scams. Since the crypto industry is still growing and developing, there seem to be many weak links and loopholes that are yet to be addressed by the major players in the space. This is one of the main reasons crypto scams have increased in the industry for almost a decade.

 

Crypto scams happen in so many ways that it becomes almost impossible for an individual to get to know them all, from crypto Ponzi schemes to rugpulls, to wallet hacks and false crypto investment platforms with false ROI promises. The list already seems to be endless. There are several ways in which these crypto scams happen, as we have seen from the major crypto scams that have taken place around us.

Like the case of Onecoin, which turned out to be a Ponzi scheme and made users lose over $5 billion dollars, to the case of bitconnect, another crypto platform that had to pull the plugs abruptly,  to the case of the scam token called Squid Game, in which the creators just made the token at the spur of the moment riding on the wave of the movie popularity and after getting a huge sum of money from the unsuspecting crypto investors who have purchased the token, rugpulled and went away with millions of dollars.

This is not forgetting the other scam cases that some of you, readers, might have suffered from various platforms that might not have made the news. It is, therefore, a matter of fact that one of the major challenges facing the cryptocurrency industry presently is the issue of crypto scams. Therefore, in this article, I will do my best to highlight three major ways you can spot crypto scams and how to avoid them.

It is also very important for every cryptocurrency user and investor to know how to spot or easily identify crypto scam projects. This will help curb the rate at which crypto users are being exploited and help improve productivity and longevity in the crypto industry.

 

Ways to Spot Crypto Scams and avoid them

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1. Look for the Crypto Website Project whitepaper.

Many cryptocurrency users might have come across the term ‘Whitepaper’ but not really understand what it means or how useful it is to them. A Whitepaper is a document outlining all the technical, economic, and fundamental aspects of a cryptocurrency project or token/coin.

It explains in detail all the underlying information about the project. Also, it is used to explain in detail the project’s roadmap, the purpose of the crypto project creation, the problem it is coming to solve, what sets it apart from the rest or what makes it unique, and its plans for its users. A perfect example is the now-famous Bitcoin whitepaper by Satoshi Nakamoto.

bitcoin whitepaper

You must pay attention to the white paper information as it helps you understand whether that project is sustainable or just a sham. Examining the crypto project white paper can help the crypto user identify a shady or unreliable project as most of the time, people who own this crypto scam project ignore their white paper and just put in shabby and unrealistic information; sometimes, if you are vigilant as a user, you would even discover they just clone other genuine crypto projects white paper with very little changes and place it on their site.

Furthermore, some of these projects don’t even have a white paper, which should be an instant red flag for you to avoid the project, as it might be a crypto scam project.

Read the Full Article on dipprofit.com.

2. Do a Thorough Research

One major challenge I have discovered crypto users have over time is their inability to carry out due diligence or a good level of research before entering into a crypto project or investing their money in one. The reason behind this is not far-fetched because most of these users are easily and quickly influenced by the media hype, noise, and sometimes visible testimonials from other so-called believers or users of these so-called great crypto projects.

This hypes quickly becloud the judgment of many of us users, which sets us up automatically for these crypto scams.

Therefore, it is very important that before investing in any crypto project, you must conduct some level of research to understand the crypto project you are investing your money in and the level of risk involved. In carrying out your research, here are some things you must watch out for in the crypto project to avoid crypto scams.

 

The number of holders for the token and the percentage they are holding

For crypto users, when you want to purchase a new token or coin, as the case may be, it is important for you to carry out your research and get to know the distribution of the token. If the majority of the tokens are in the hands of very few wallets addresses, maybe two or three, this is already a red flag as these major token holders are very likely to be the creators of the token and can easily manipulate the price of the token at the expense of the innocent and unsuspecting investors.

In a clearer picture, they can decide to sell off a large chunk of their holdings after several users have invested in the tokens, which would, in turn, drop the price and make the investors/holders lose money to them after the price dips due to their sale, they would buy it at a lower price again, urging other unsuspecting users to buy during the dip and try to push it back up to a good price again. The circle keeps repeating while the project owners keep milking their users dry.

It is, therefore, very important to check the holders of the token you are about to invest your money in and ensure that the token is reasonably distributed among numerous addresses. You can check all these on coinmarketcap. You only need to get the token project contract address on coinmarketcap. Once you have seen the token contract address on coinmarketcap, you click on the contract address.

It would take you to the token project transaction blocks, history, and other information,

navigate to the holders’ addresses, and here you would be able to get hold of some information concerning the crypto project.

Note that the project must be on coinmarketcap, coingecko, or any other trusted and reliable cryptocurrency exchange before you can most likely access this level of information. Checking up on this information can also be very technical, so you can also enlist the help of a more experienced cryptocurrency developer or a tech expert.

Check for the liquidity time lock.

Another very important thing to look out for to avoid crypto scams is the liquidity time lock of the project. Any or most legitimate cryptocurrency token/coin projects always ensure that there is a timelock of a large portion of their minted tokens.

DaVinci, the admin of the Shibarium Telegram and Discord channels, has issued a critical warning to Shiba Inu community members as part of efforts to keep them safe. 

Read more on: https://thecryptobasic.com/2024/01/27/shiba-inu-team-issues-new-warning-to-shib-holders-regarding-emergence-of-new-l2-solutions/
#ShibaPriceAnalysys #SHIB💥 #Crypto #cryptoscams #CryptoNewsUpdate

In what has been an eventful month for the crypto space, the total value lost to hacks and other security incidents has surged to a whopping $290 million.
Read more on: https://thecryptobasic.com/2023/11/23/hackers-milk-over-290m-from-crypto-projects-in-november/
#cryptoscams #CryptoScamAwareness #Crypto #CryptoNovember #CryptoNews🔒📰🚫

#BTC Top digital currency #exchange Coinspaid has suffered another crypto scam, with active investigation reportedly underway by the firmIn a distressing turn of events, the crypto payment #ECOSYSTEM and digital assets processor Coinspaid is grappling with yet another potential #cryptoscams , possibly resulting in a loss exceeding $6 million. According to information by the on-chain analyst ZachXBT, unauthorized transactions and a substantial loss of funds have been experienced by users on the Coinspaid platform.The Coinspaid Hack UncoveredWhile the platform has acknowledged the exploit and revealed that it is already investigating the potential breach, the recurrence of security issues raises concerns about the platform’s ability to safeguard users’ assets. Investors, who had hoped for a swift recovery after the previous alleged crypto exploits, now find themselves facing renewed uncertainty.Meanwhile, users have been advised to take immediate precautions. This includes changing passwords, enabling two-factor authentication, and closely monitoring their accounts for suspicious activity. Likewise, Coinspaid, in response to the latest crypto scam incident, has assured users that it is working diligently to address the security breach and mitigate the financial impact on affected users.However, regulatory bodies may shine a beam on Coinspaid, as repeated security breaches could signal systemic issues that demand immediate attention. Critics note that the cryptocurrency space while promising innovation and financial inclusion must prioritize security as a fundamental component of its growth.Crypto Scam Plaguing the IndustryAs reported a few days ago, Gamma Strategies, an Ethereum-based liquidity management protocol, announced that it encountered a security breach. The incident involved an unauthorized extraction of $3.4 million in digital assets, prompting Gamma to take unusual steps in its aftermath management. Similarly, the popular decentralized exchange #KyberSwap fell victim to a significant crypto scam, resulting in the loss of approximately $46 million in various cryptocurrencies. As per the update, the crypto scam attack targeted KyberSwap Elastic, prompting urgent advisories for users to withdraw funds. Also, OKX suffered a major exploit with hackers stealing over $400,000 from user accounts.It is crucial for platforms to prioritize security measures, conduct regular audits, and implement safeguards to prevent and mitigate potential breaches. This commitment to transparency and accountability is a crucial step in restoring trust within their user base.🗣🗣Empower Our Mission: Tips For Dedicated Service. 🗣🗣👉Users are encouraged to support the mission by offering generous tips.🗣This empowers creators to work even harder, ensuring the continued delivery of top-notch investment advice. @WISE CRYPTO NEWS