Scams and Fraud

Scams and fraud have found a way to seep into the crypto market, preying on the excitement of investors and exploiting the Fear of Missing Out (FOMO).

One example of such a scam is the Ponzi scheme BitConnect, which promised high daily returns and lured unsuspecting investors into a trap. When BitConnect collapsed in 2018, those who had bought in were left with massive losses.

On the other hand, legitimate projects like Ethereum focus on creating real value. They have transparent, open-source blockchains and committed teams, providing a solid foundation for investors to trust.

Another fraudulent method found in the crypto world is phishing scams. These scams often disguise as trustworthy entities to trick you into revealing sensitive information.

A prime example of a phishing scam is the notorious Twitter Bitcoin scam of 2020. High-profile Twitter accounts were targeted to promote a Bitcoin scam, leaving many victims in its wake.

In contrast, genuine projects like Cardano prioritize transparency and peer-reviewed research. These qualities demonstrate the ethos of a trustworthy crypto project and provide investors with the confidence they need to invest.

Last updated