Crypto Academy / Season 3 / Week 6 - Homework Post for [@yohan2on] ― Crypto Scams and how to avoid them
Hello! Steemians, I am @masumrbd. In Steemit Crypto Academy Season-3, Week-6 is running. Now, I am writing my homework task about "Crypto Scams and how to avoid them" for professor @yohan2on. Let's get started:
1- What are Crypto scams?
Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project)
Crypto scams
Crypto scams mean stealing someone's cryptocurrency by cheating. Crypto scams are usually done by showing people various temptations. For example, when you are browsing the net online, you become a millionaire by investing $ 100. Those who are aware of such advertisements avoid them but those who have less idea about online easily click on those links and admit to the scam.
Different types of new coins come into the market. The advertisements of which easily make people greedy. The coins are promoted by tweeting from the online anonymous account. Without realizing it, many people invest in the coins and accept the scam.
Crypto scam is also done by creating different websites through phishing. To fool people, hackers open fake websites and do Crypto scams. Many people don't understand that he gives his private key to the websites.
A few days ago a comment came on my post on Steemit, there was a link saying I got 100 STEEM I have to click on the link to take it. I realized it was a crypto scam so I didn't click on that link anymore. But I think many people have admitted to cheating by clicking on such a link.
Types of Crypto Scams
1- Imposter Websites
People are made fools by making imposter website. In this case, hackers make a website like the original famous website. They add 2/1 extra digit with the name of the original website. By doing this, people do not understand that it is a fake website. They believe they are deceived by depositing there for a transaction or by providing their own private key.
2- Fake Mobile Apps
It is much easier to check here now. Because now you can't find people who don't use android phone. Hackers use that opportunity. There are more than 10,000 such apps in the Play Store. So you have to be careful before downloading any app.
3- Bad Tweets and Other Social Media Updates
It has become a common practice to fool people through tweets and social media updates. Crypto scams are well tweeted and positive news is made on social media from the anonymous account. People then fall prey to spam.
4- Scamming Emails
Hackers often use email to spam people. They seize the opportunity to email people with temptations and ask them to click on it with a link. In this way, hackers steal a lot of important information from people and people accept spam. If you want to avoid these, you have to refrain from clicking on the link given by a stranger by mail.
PlusToken Cryptocurrency scam
PlusToken Cryptocurrency scam is a big ponzi scam. $3 billion was embezzled through this scam. PlusToken's investor was $3 million people. Everyone was expected to earn 10-30% profit per month so they all invested in PlusToken.
PlusToken's advertisement was run with a messaging app called WeChat. Most of the investors cheated here were from China and Japan. PlusToken was launched in 2016. Then it starts collecting funds from investors. Thus, after 1 year, it was closed in 2019. Through this scam $3 billion cryptocurrency scam is gone to Chinease authorities.
Reference link
2- To what extent have Crypto scams affected the Crypto space?
Crypto scams in the Crypto space were affected very badly. The investors get panicked and lost faith in the cryptocurrency. He is afraid to invest in it. So investors in the crypto space are declining.
We all know about the Bitconnect scam. By this scam, $3.5 billion was stolen from investors through the Bitconnect scam. But Bitconnect was a coin of the Top 20 Cryptocurrency. This ponzi scam happened in 2016. Since then, many people have lost confidence in Crypto. So they reduce investing in other coins as well. The value of cryptocurrency decreases.
Due to these scams, new investors are not able to come into the Crypto space. They are always going back by referring to the ponzi scams that happen in Cryptocurrency. So we should think about rules and regulations in the Crypto space. Otherwise, the number of investors in the crypto space will continue to decrease day by day.
Due to crypto scams, the governing bodies of many countries have banned it in their countries. Because they can't rely on it yet. Moreover, money laundering happens through these. A few days ago, more than 1000 cryptocurrency mining machines were smashed in Malaysia.
Crypto scams are seriously affecting the Crypto space. New coins are constantly coming into the market. Which of these is legit and which is a scam but we have to find out before investing. First, you have to take a good look at the whitepaper of a coin, then if you understand it well, you have to think about investing in it.
3- Will regulations in Crypto add value to the Crypto space?
Yes, of course regulations in Crypto add more value to the Crypto space. With regulations, crypto scams will be greatly reduced, which is a good thing. In addition, it will be easier to attract new investors to Crypto.
Now Cryptocurrency has brought a new revolution. Not everyone is familiar with it, moreover, the ongoing ponzi scams in Crypto have reduced its value. When there is any positive news about Crypto on social media, the price of Cryptocurrency increases, while when there is negative news, their price decreases. This is because of the lack of proper regulations. It is largely possible to add value to the crypto space through proper regulations.
It is hoped that with proper regulations, traditional banking systems will no longer exist. Crypto will be the medium of all transactions, everyone will be able to transact through it on a daily basis. If this is possible, the importance of crypto space will increase a lot.
Due to the lack of regulations at present, many illegal transactions are being done with Cryptocurrency all the time. So to avoid these, all governments should bring regulations in Crypto. So that no one can handle illegal transactions. Germent is constantly being deprived of getting tax.
I research on internet and know about the regulations on cryptocurrency of different countries in the world from this website. When these regulations were given, it brought positivity in the case of crypto space, which is very interesting.
Conclusion
Crypto Scams are the act of stealing his cryptocurrency by cheating. Different types of Cypto scams are discussed in this homework. There are some descriptions about PlusToken cryptocurrency through which $3 billion was scammed.
I have briefly described how crypto scams are affecting Crypto space by reducing interest of the investors . It has been explained why the value will increase when regulations are brought in Crypto space.
Best Regards,
@masumrbd
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