There is no denying that cryptocurrency has taken over this world. In the past few years, digital currency has gained tremendous popularity, with millions of people now using it to buy goods and services online. In other words, cryptocurrency has become big business.
However, with this recent popularity there has been a dark side: fraud. Cryptocurrency trading scams not unfamiliar with controversy and fraud, but became more common as my industry grew. No one is safe from this predator of digital assets, from large investors to everyday users.
To help you avoid becoming a victim of fraud, here are the six biggest cryptocurrency scams of all time:
1. Bitcoin deposits & trusts
This organization is, perhaps, the most notorious cryptocurrency fraud of all time. Bitcoin Savings & Trust (BS&T) is a digital currency Ponzi scheme that promises incredible returns for investors. BS&T claims to be a Bitcoin trading platform, but only home to massive fraud.
BS&T attracts investors with large profit guarantees, but only uses new investors ’money to pay old investors. This continued for some time until, eventually, it all imploded, and the SEC killed BS&T.
It’s no secret that it’s tempting to invest in things that promise high returns, but it’s best to be wary of those opportunities, and BitConnect is a perfect example. This digital currency platform promises investors a return of up to 40 percent per month, which yields a very high return on investment.
Of course, this return may not be achievable through traditional investments, but with BitConnect, all of this is really great. The platform became a huge Ponzi scheme and collapsed, leaving investors high and dry.
In April 2018, Vietnam’s cryptocurrency exchange, Modern Tech, launched two digital currencies: Pincoin and iFan. The coins are being billed as part of a new cryptocurrency ecosystem that will change the way people interact with social media.
However, it didn’t take long, people knew that something was sweet. Modern Tech promises an absurdly high return on investment, and it quickly becomes apparent that Pincoin and iFan are nothing more than Ponzi schemes.
After further investigation, authorities revealed that the people behind Modern Tech had stolen USD $ 870 million from 32,000 investors, and it was considered one of the biggest cryptocurrency scams of 2018.
K Nishad, the founder of Morris Coin, created a cryptocurrency known as Morris Coin in early 2020. It is a non -existent digital currency that promises investors the next big thing in cryptocurrency.
The coins were created as a way to revolutionize the online gambling industry by providing fast transactions and very low costs.
However, it wasn’t long before people realized something was weird. According to reports, the team behind the coin created a fake website and white paper, and used the stolen photos to promote the project. And, they soon disappeared with the millions of dollars they were raising from 1.1 million investors.
Another cryptocurrency scam that is happening in 2018 is Dekado Coin. This digital currency platform promises to reshape the way people invest by offering them a unique investment opportunity: the opportunity to engage in mining different cryptocurrencies. They even have a referral program where people can earn more money by asking other people to sign up.
Dekado Coin claims that a team of profitable experts run the mining operation, but, unfortunately, this is all just home. Soon, these crypto mining operations were non -existent, so investors were out of pockets. They even withheld personal information and team authentication to prevent irresponsibility.
You may not know it, but ACChain is one of the most promising digital currency projects of 2017. The project generated USD $ 80 million in initial coin offerings (ICO) to develop a blockchain -based ecosystem that will be used to issue, save. , and digital asset trading.
However, the picture-perfect ACChain soon became a nightmare for investors. The headquarters address appears empty, and the company cannot be traced, not found. The organization suddenly stopped responding to investors ’questions and disappeared.
These are just a few examples of the many cryptocurrency scams that have occurred over the years. And, unfortunately, you’ll be able to see more of it in the future.
So, if you are thinking about investing crypto exchange or digital currency, make sure you do your research and only invest in reputable projects. And, always remember, if something looks too good, you better be wrong on the side of caution.
- ACM advises readers to consider their own situation and seek their own advice. You should also verify the nature of any product or service, and consult with the relevant regulator’s website before making a decision.