Compared with traditional investment, the price fluctuations are significantly larger, and the basic technology is growing. Potential investors may be difficult to understand what they are buying and what they should be in their investment strategies.
All of these confuses have created a perfect environment for the operation of fraudulent, posing reliable encrypted currency companies and using eager newcomers to enter the encrypted currency field. This is especially true, usually known as “Mountain Coin”, which can attract investors through commitment huge returns, and then harvest leeks.
Fortunately, most encrypted currency is legal, not simply trying to take your money. These trusted encrypted currencies have an active development team that develops a clear goals and strategy for improving their digital currency, and is usually covered by the main financial and encrypted monetary publications, making investors easier to identify them.
Every day, dozens of large-scale publicized encrypted currencies and NFT projects are launched. There is almost no information on their actual or backward teams. These new projects that come come out of the spring bamboo shoots are often harvesting the ghosts behind the leeks. Let me introduce several common encrypted currency market scams.
What is a dead currency?
When the trading volume in the past three months is less than $ 1,000, or when its website is closed or the developer has abandoned the project, it means that the encrypted currency has been “death”, there is no liquidity, and the market cannot be traded. All of these behaviors make encrypted currency to investors are not feasible and useless, thus making it “dead” coins.
Why does the encrypted currency will die?
Since February 2020, approximately 1,000 encrypted currencies have been announced or no longer existed, and the total death is about 2400 deaths. This is equivalent to an increase of about 71%!
These previous encrypted currencies will die for various reasons. Sometimes, encrypted currency is just outdated, and developers cannot follow the rapid changes in the area of ??the block chain, while other dollars can’t attract enough investors to create sufficient liquidity and community to maintain the operation of the project.
However, a large part of these dead currency is the result of scam and fraud, these scams use the turmoil encrypted market and block chain technology to deceive investors.
How does encrypting currency fraud work?
Investors can become victims of encrypted currency scams in a variety of ways. These ranges from the scams ICO to the classic “Sir-plummeted” program from the non-existent encrypted currency project, and most of the owners of the coins are hyperbed to exaggerate their value, then sell their encryption at low prices. Currency, artificially fry to high-priced shipments, let the leeks take over.
Another form of encrypted scam includes a dummy wallet or an exchange of a fake wallet or an exchange by invading investors to steal people’s digital currency. The classic Pang’s scam also rolls soil, using uncontrolled markets and people difficult to keep up with the development of encrypted currency and block chain.
Encrypted history the largest scam coins
Now we have introduced some more common types of encryption fraud, and we summarize some of the largest fraud cases in encryption history. I hope that by understanding how fraud people have deceived currency investors in the past, we can learn to avoid their fraud strategy in the future.
Vika coins – $ 4 billion
OneCoin is a typical example of encrypting the world of Zhongpangzhu. From 2014 to 2016, OneCoin attached more than $ 4 billion in investment and subscription from the hopeful encrypted enthusiast. Unfortunately, when the OneCoin Exchange (the only way to fulfill it in the plan) is closed when it is closed in January 2017, they are destined to be disappointed.
The founder of OneCoin hides in 2017, and her joint founder Sebastian Greenwood was arrested in 2018 and is currently serving prison in the US. Ruja’s brothers Constantine Ignatova took over the company in the case of she hiding, and was also arrested, recognizing that fraudulent and confulsory sin.
BitConnect – $ 2 billion
Another classic case is BITCONNECT, BitConnect is directly returned from the high point at the fastest speed. Founded in 2016, the price reached its peak in December 2017, BitConnect became one of CoinMarketcap’s best-in-money in 2017. However, after a few months, the hype is over, because the founder quits, took away their discrise and watched the plan.
In September 2021, US regulators sued BitConnect and its founder Satish Kumbhani conducted $ 2 billion in fraud, and he brought the investor’s Bitcoin to the other of the plan. Sponsor, such as Glenn Arcaro, the latter pleenthrove. At the same time, the drop of Satish Kumbhani is unknown, although it is believed that he has been carrying out business outside India during fraud. Pincoin and IFAN – 87 million US dollars
Pincoin and IFAN scams are one of the largest ICO fraud in encryption, and 32,000 investors have lost $ 870 million. Pincoin promises to investors to receive 40% of the return on investment per month, and the MODERN TECH that is widely promoted in Vietnam provides 8% reward to each investor at each investor at each investor.
The reward plan has all the features of the Pang’s scam, and the company stops investors with statutory currency, but distributes their own “IFAN” to the actions, exacerbating the growing doubt in the community.
When the team behind PinCoin suddenly disappeared, the entire plan collapsed, and investors could not recover their funds. So far, there is no arrest or allegation related to this scam.
PLEXCOIN – $ 8.27 million
PlexCoin is another example of ICO scam. The developer disappeared with investors, and there is no useless loop. Initially provide investors with 1,354% of the returns, this is not the most subtle scam, but its thick commitment has attracted many unfortunate investors.
After fraudulent ICO in 2017, three Canadian Dominic Lacroix, Sabrina Paradis-Royer and Yan Ouellet were scamned about $ 8.27 million, and they were found to be responsible for transferring millions of investor funds to their private account. Their promise to high returns and the Singapore expert development team guarantees examples of lying on their investors.
There are several phases of Paycoin scams, of which Homero Joshua Garza and his unscrupulous encrypted mining supply company GAW Miners LLC defrauded customers and investors’ cash.
GAW Miners sell equipment for emergencies, but when the demand seems to exceed the supply, things begin to show significant fraud. GAW launched a cloud mining service for customers waiting for receiving orders, allowing them to purchase “Cloud Digital Contracts” to make them pay for mining costs and get gains.
However, these contracts did not excavate the encrypted currency, but paid the benefits obtained from the new subscriber, which made it another encrypted pabon scam. The company then released their own encrypted currency Paycoin (initially known as Hash Coin), after the false statement of the big propaganda and the main partner, they guarantee that the reserve price of each coin is $ 20.
Such a high valuation made one of the previous five encrypted currencies at the time, but then the entire system collapsed, Garza fled the United States.
Squid game – $ 3.38 million
The Squid Game Encryption scam is one of the most striking scams in recent years. The released Squid genealog is said to mimic the world’s popular Korea Popular Netflix Programs “Squid Game” game, but it is actually no relationship with the series.
The popularity of the TV show and the potential of the rapid rise of the encrypted monetary market, and investors have poured into a piece of it. However, as the value of Squid continues to rise, it has increased by 45,000%, reaching a peak of $ 2,856, and users find them unable to fulfill, but they are told that they must purchase “Posl¨¦” to play games. Earn back their money.
As the investor is getting more and more panic, they have fallen into another encutable piling scam, and people began to discover danger signals such as spelling errors on the website of the loop. The owner withdrew the pool. The value of Squid plummeted, and investors almost all, and some part of a certain place received approximately $ 3.38 million.