• Latest
  • Trending
  • All
  • LATEST NEWS
  • SPONSORED POSTS
  • BANKING
  • Cryptocurrency
  • Job Past Questions
  • PRICE WATCH
  • VIEW POINT
  • ECONOMY
  • Careers
  • Press Release
  • Breaking News
  • education news
  • Personal Finance
  • Networth
Top 5 crypto scams to watch out as a trader or investor

Top 5 crypto scams to watch out as a trader or investor

July 5, 2021
nlc protest

Federal Government Urges NLC and TUC to Reconsider Nationwide Strike

September 29, 2023
U.S. President Joe Biden signs an executive order, in Washington

President Biden Appoints Two Nigerian-American Experts as Special Advisers

September 28, 2023
Meta AI Chatbot

Mark Zuckerberg Unveils Meta AI Chatbot, a Rival to OpenAI’s ChatGPT

September 28, 2023
Food Prices

Food Prices Soar by 31% in Nigeria with Ebonyi and Abia States Leading, Reports NBS

September 28, 2023
binance announcement

Binance Directs European Users to Convert Euros to USDT Following Paysafe’s Termination of Services

September 28, 2023
Arbitrum Ethereum Layer 2 Scaling Solution to Launch This Month

US Set to Welcome Ethereum Futures ETFs Trading Next Week, Bloomberg Analyst Predicts

September 28, 2023
Bitget study shows that 46% of millennials in the world's largest economies own crypto

Analyst Predicts Bitcoin Price Hike to $30K in October as Currency Sees 2% Uptick

September 28, 2023
Cooking Gas Prices in Nigeria: Skyrocketing to New Heights?

Rising Cooking Gas Prices Spark Concern: NALPGAM Calls for Federal Intervention

September 28, 2023
KPMG Nigeria sees significant growth in mobile banking

E-Banking Fees Surge to N154 Billion in First Half of 2023 Amid Growing Adoption

September 28, 2023
Okeodo Market

Lagos State Government Closes Okeodo Market Due to Environmental Violations

September 28, 2023
Nigerian Stock Trades Tumble to Four-Month Low Amid Market Uncertainties

Nigerian Stock Trades Tumble to Four-Month Low Amid Market Uncertainties

September 28, 2023
Nigeria Secures $1.95bn in World Bank Loans Amidst Rising Debt Concerns

Nigeria Secures $1.95bn in World Bank Loans Amidst Rising Debt Concerns

September 28, 2023
  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise
Saturday, September 30, 2023
  • Login
Financial Watch
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
Financial Watch
No Result
View All Result
Home Cryptocurrency

Top 5 crypto scams to watch out as a trader or investor

by Sam Gabriel
July 5, 2021
in Cryptocurrency
1
Top 5 crypto scams to watch out as a trader or investor

Top 5 crypto scams to watch out as a trader or investor

491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Top 5 crypto scams to watch out as a trader or investor – The cryptocurrency industry is a wonderful innovation which have proven to become the currency and financial system of the future with minimal control of money by government fiats, it has enabled people all the world to own and move value in a decentralized manner without the hurdles of middlemen like banks and money transfer operators. Although crypto is solving problems but there is currently the issue of fraud and scams in crypto especially in the decentralized finance (Defi) space, Major crypto hacks, thefts, and frauds hit $432 million by April’s end this year alone. in this article we are going to explore various tactics bad actors use in parting way with people’s fortunes:

Exit scam – Crypto exit scam is the kind of fraud that involves running off with investors funds collected during an initial coin offering (ICO), the company may decide to initiate her exit immediately after the ICO or list on an exchange with low liquidity and then disappear. Exit scams started in 2017 following the ICO frenzy that began a new era of fraud especially in defi, the first exit scam happened when an escrow-related cryptocurrency startup called Confido disappeared overnight after collecting $375,000 ICO. Following the news of the Confido exit scam, the market cap of the cryptocurrency fell from about $6 million to $70,000 within a week.

Shortly after LoopX, another crypto startup whose ICO promised “guaranteed profits every week thanks to the most advanced Trading Software out there to date.” It abruptly shut down in February 2018 after raising $4.5 million from investors through a combination of Bitcoin and Ethereum.

Top 5 crypto scams to watch out as a trader or investor2
Top 5 crypto scams to watch out as a trader or investor2

In recent developments, hundreds of exit scam have happened too many to mention, In April, the founder of Thodex exchange allegedly fled Turkey with $2 billion in user funds; one thing common with exit scams is that it is always associated with ICOs and it is important to do your own research (DYOR) before investing in ICOs.

Hacking – hackers have been wreaking havoc in traditional finance since inception, crypto being an unregulated and new field have proven to be a fertile ground for hackers to easily run-off of funds undetected. In 2021 alone, hackers have been able to steal $156 million from platforms like Yearn; platforms like PancakeBunny suffered a flash loan attack causing the value of its token to crash by more than 95%.

Rugpull – this is very popular in defi space and it is slightly different from exit scams where a company simply run-off with ICO funds, a rugpull however happens usually in an actively traded token in a decentralized finance exchange such as Uniswap and pancakeswap, a kind of exit scam where project developers drain liquidity from a protocol, leaving investors unable to trade. the project developer can at any point pull liquidity tokens instantly taking price to zero. It always feels like pulling a rug off the feet of investors unannounced and everything crumbles.

DeFi “rug pulls” and exit scams made up 99% of all crypto fraud schemes in the second half of 2020, according to data from blockchain analytics company CipherTrace.

Pump and dump – this is the oldest trick in the book for crypto fraudsters, crypto influencers especially on twitter, youtube and telegram buy large amount of tokens and then hype the project using their influence on social media so their unsuspecting followers will FOMO in and then dump on them. The most recent incarnation of Pump and dump scheme started in Polkastarter IDOs, they do this by raising funds for initial dex offering (IDO) and then launch trading on Uniswap, the first few minute buys are usually insiders purchasing a very large amount of tokens instantly pumping the price to about 20x and then dump few minutes later crashing the price by about 70%!

Unfair token distribution – it is always immoral even in the real world where a few privileged individuals hold 99% of money in circulation which creates huge gap in standard of living, in the crypto space any token where one or two holders account for morethan 51% of all tokens in circulation is bound for a swift crash. Before investing in any token it is very important to check holder structure and how tokens are distributed, failure to do so may result to losing your investment in a heartbeat.

Conclusion

The crypto space is still young and unregulated at the moment, as beautiful as decentralization sounds it has its own share of troubles, namely: SACM! The crypto space seriously need an urgent regulation that will hold everyone accountable for any wrongdoing. Until this regulation of crypto happens expect to see more scammers walk free with billions of dollars in stolen funds.

This article is for information purposes only and should not be taken as a financial advice, consult your financial advisers for professional financial advice.

Share196Tweet123
Previous Post

BREAKING: Lagos govt orders investigation into death of girl during protest

Next Post

Jamb sets new record as 2021 UTME concludes

Sam Gabriel

Sam Gabriel

Samson Gabriel a graduate of mass communication from Auchi Polytechnic, he is a passionate writer with experience in radio scrip writing. He brings his experience from the broadcast media into play here as he continues to enjoy his passion as a journalist. He can be contacted via whats-app on: +234701105670

Next Post
JAMB Result checker 2020 out | www jamb org ng result checker

Jamb sets new record as 2021 UTME concludes

Comments 1

  1. Marista says:
    2 years ago

    if you are a victim of a scam and you want to recover your money, send a mail to {ćhàŕgebàčkñôw@màîĺ.ŕú}
    They have helped so many people track down their lost funds from scammers. So do not panic. No matter how long you have been scammed or lost money, just send them a mail for help.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
FRSC recruitment

Federal Road Safety Corps Salary Structure – See How FRSC Pay Workers

September 22, 2021
FRSC insists it has statutory powers to arrest traffic offenders impound vehicles

FRSC News 2021 – See Today’s Recruitment 10 latest Updates

September 11, 2021
The Nigerian Army DSSC SSC Recruitment Portal

Current Salary of Nigerian Army Officers: See Full Details (2021)

September 11, 2021
CBN AGSMEIS Loan Form 2020/2021: How To Apply Without Collateral

CBN Loan application Form 2021: How To Apply for Collateral free loan

August 17, 2021
Regulatory preasure forces Binance to suspend Euro deposits

Binance Makes Its Way into Dollar Indexes as BNB price Drops 10% in One Week

July 20, 2021
How buy 2019 JAMB 2019 UTME form/ registration PIN online

UTME result: How to Check JAMB Result 2022 – Jamb Result Checker

1333
JAMB Result checker 2020 out | www jamb org ng result checker

Utme 2021: Check JAMB Results Using JAMB Registration Number

1146
List of JAMB Approved CBT Centres In Abia State 2020/2021 | Abia State Jamb Cbt Centres

Jamb Portal 2021: How to check Jamb Results – jamb.org.ng/efacility

523
P Yes registration

www.p-yes.gov.ng – Register For P-YES Progeamme Portal – Apply Now

436
Breaking: JAMB releases more 15,490 UTME results

JAMB Results 2021 Online Checking Steps | www.jamb.org.ng Result

316
nlc protest

Federal Government Urges NLC and TUC to Reconsider Nationwide Strike

September 29, 2023
U.S. President Joe Biden signs an executive order, in Washington

President Biden Appoints Two Nigerian-American Experts as Special Advisers

September 28, 2023
Meta AI Chatbot

Mark Zuckerberg Unveils Meta AI Chatbot, a Rival to OpenAI’s ChatGPT

September 28, 2023
Food Prices

Food Prices Soar by 31% in Nigeria with Ebonyi and Abia States Leading, Reports NBS

September 28, 2023
binance announcement

Binance Directs European Users to Convert Euros to USDT Following Paysafe’s Termination of Services

September 28, 2023
Financial Watch

Copyright © 2023 Financial Watch.

Navigate Site

  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise

Follow Us

No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH

Copyright © 2023 Financial Watch.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In