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Crypto Traders Beware of Crypto Scams

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crypto scams

Cryptocurrency-related scams and hacks have grown to become one of the largest dangers when it comes to crypto trading in recent years. Scammers were interested in cryptocurrencies from the beginning, but their actions increased in number and sophistication exponentially after the crypto hype of 2017.  As a result, millions upon millions of dollars in crypto were reported stolen in the last few years.

At first, scammers were mostly targeting people through phishing attacks via email. However, their methods quickly evolved, and soon enough, they jumped on the ICO bandwagon. The situation has become so bad that crypto investors had to check, double check, and triple check every single investment, and even then they could not be certain that they are not being tricked.

Luckily, the ICO trend has ended, and not a lot of people willing to invest in random ICOs remain these days. However, numerous scams still remain fresh in investors’ memory. With that in mind, here are a few examples of some of the biggest and most damaging scams reported in recent years.

1. Phishing scams

As mentioned, scammers originally started tricking people through phishing attacks. The methods they used are relatively typical for this type of an attack, which was present on the web long before cryptocurrencies appeared.

The process is simple — hackers would obtain the email address of a crypto investor, and try to trick them into giving away sensitive information. A known scamming attempt is when scammers make a fake online page that looks exactly like a legitimate website, such as one belonging to a crypto exchange.

All that the scammer needs to do at this point is tell their victims that there is something wrong with their accounts and that they need to react as soon as possible. Of course, they would also provide a link to the fake page, on which the victim is expected to click and try to log into their account. At this point, scammers have obtained the victims’ login credentials, which they can use to access their funds. The same danger exists when it comes to hot wallets, which is why it is always advised that traders and investors pay close attention to the links they click.

2) Fake projects

Fake crypto projects have become almost a norm in the crypto world at some point. As soon as the crypto prices started rising, investors started buying more coins and investing more money. The scammers quickly realized that some of them would invest in almost anything without too much research, in fear of missing out on a great opportunity. Because of this, numerous fake coins rumored to be Ponzi schemes started appearing on the market.

One of the biggest ones so far was Bitconnect, which had its own coin, its own platform, and it looked real apart from the fact that it promised astronomical returns to all those who invest in it. The project attempted to attract as many users as possible through a lending program, where users were supposed to send their BCC coins to others in order to get them interested.

3) Scammers using celebrities to trick investors

While searching for better ways to quickly attract net investors, scammers quickly realized how much potential celebrities have when it comes to promoting their projects. Celebrities have millions of followers around the world, most of which are not familiar with cryptocurrencies and dangers that lurk in the industry.

As such, they are easy targets, and scammers soon partnered with many celebrities to attract these new investors to crypto, and their fake project in particular. The best-known cases of celebrities partnering up with fake projects include DJ Khaled and Floyd Mayweather. Of course, this does not mean that all crypto projects partnered with celebrities are fraudulent. Instead, it only means that investors need to remain careful when researching the project, no matter who supports it.

Obviously, caution while investing in crypto projects is of utmost importance in order to secure your funds and avoid being scammed. Each project needs a deep amount of research, as well as the team that is running it, as scammers often post made up credentials, and use stolen names and pictures.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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Altcoins

My Crypto Heroes Announces Issuance of MCH Governance Token

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Tokyo, Japan, 24th November, 2020, // ChainWire //

My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH. 

My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.

What is MCH Coin?

MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.

Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.

The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:

https://medium.com/mycryptoheroes/new-ecosystem-with-mchcoin-en-a6a82494894f

During December 2020 the first governance…

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