Crypto Scam Alert!
Crypto Scam Alert!
Hi everyone! Today I want to highlight a very clever scam that has been going around in YouTube (and is still there). I hope that you can see this post and be aware of it and don't fall into the scam. Please share with your friends, repost and reblog this post to create more awareness.
The scam is a MEV arbitrage bot scam. How it works is users are promised consistent returns for almost no work required. The scam didn't even state that you need to invest a small sum of money (even though you need to out in certain amount of cryptocurrency).
What is MEV
MEV refers to the maximum value that can be extracted from block production in blockchain networks, primarily Ethereum. This includes profits from arbitrage, liquidations, and other trading strategies. Arbitrage involves taking advantage of price differences of the same asset in different markets.
Basically it is like inserting yourself between a buyer and seller and earning the difference between the buying price and selling price.
The scam works like this:
- Scammer tells you he generate a bot smart contract code using chatgpt.
- He will walk you through where to copy the code, and how to deploy the smart contract.
- He will then tell you to put in around 0.5 ETH of cryptocurrency. This is to "facilitates" the bot to search for MEV trades and earn the difference.
- Scammer will go on to say that to earn a faster return, you can put in more ETH.
- Finally he will show you his earning after 12 hours and after 24 hours.
What really happens.
The smart contract is the key to the scam. Instead of searching for profitable MEV transactions, the smart contract will just transfer whatever ETH you put in to another wallet address directly. The clever part is, the smart contract doesn't even show the destination (scammer) address! It is broken into a few parts and will be recombined into the final address when the smart contract is executed.
Below are 2 examples of such scam youtube videos. There are more if you search for it.
Typical Characteristics of Such Scam Post.
Only 1 single video
If you go into the channel itself, you will notice that there is usually only 1 video (that scam video). Sometimes there might be more like 3 or 4, but that's it.
Joined recently
Some of the channels were created recently. Some even less than a week or less than a month.
unrealistic number of views and subscribers (
Some channel even have hundreds of thousands of subscribers and video counts. Considering that the channel was recently created and only with a few videos, it is not realistic to have few hundred thousands of subscribers and view counts.
Here are some videos that exposes the scam.
Crypto MEV Scam Explained - Video 1
Crypto MEV Scam Explained - Video 2
People (including me) fall into this type of scam because of FOMO (Fear Of Missing Out), or out of greed. Usually these type of scams feeds on our desire to earn easy money with he least effort. I hope this post helps you guys to avoid being scammed by these unscrupulous scammers. Stay safe!
That's amazing article to understand what the scam is and how it works. We be aware from these scams and always save our assets. Because in today era's many scam done and he get money due to greed of double. So user enter the amount to get double profit and after all scammers blocked him. Thanks for awareness.