Crypto Academy || Season 3 || Week 6 - Homework Post for professor [@yohan2on] Crypto Scams and how to avoid them by @obikay

What are Crypto scams?
Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project)

source

WHAT ARE CRYPTO SCAMS

Crypto scam is when someone or group of people aims at Misleading or duping people into sending thier cryptocurrencies or making them disclose an avenue to their crypto wallets. Crypto scammers entice the investors into a fallacious sense of security, by offering them Spectacular deals or astonishing rewards, thereby making the person to stake with their cryptocurrency or send it via other means. And when this purpose is achieved the scammer disappears, leaving the victim with nothing. Some of these scammers go for the prominent CEOS, while some others hack accounts or make use of malware to get into people's account.

Crypto scams come in forms and sizes. Some of them are as follows;

FAKE EXCHANGE SCAMS

This type of scam include the scammers developing a fake Exchange, example like the BitKRK in south Korea, where the investors invested their millions because they were been offered an outstanding profits not knowing they were investing in the wrong Exchange. It was later been shut down by the authorities but before then, the investors lost millions of money in capital.

GIVEAWAY SCAMS

Another way scammers operate is that they pretend to be top popular investors or recognized celebrities through claiming that they give help to people. Telling or making someone to send cryptocurrency to them and the scammers promising to add up to help the person..After sending it. The victim won't hear from them again.

FAKE CRYPTO WALLET SCAM

In the cryptoworld we understand the fact that we can't store our cryptocurrency in our bank accounts.we make use of crypto wallets. Crypto wallets keeps the digital keys we use to have access to our crypto investment. Some scammers don't go through the stress of hacking these crypto wallets rather they market fake crypto wallets via apps store or online and they hold the master keys of these fake crypto wallets themselves and can easily access what's in it at any time. The best way to avoid not been a victim, is by using a well known crypto wallet.

VIRUS/MALWARE SCAMS

Some scammers use computer virus or malware to have access into someone's crypto wallets and they can take out the savings in it. Most of the malware are programmed to capture the victim's login details.

RESEARCH ON A CRYPTOCURRENCY SCAM

source

ONECOIN CRYPTO PONZI SCHEME

The onecoin was an infamous fake cryptocurrency. This crypto scam was plotted by Ruja Ignatova and Sebastian Greenwood acquired $4 billion from ambitious investors around the globe.
Many people bought the idea by Iganatova's magnificent educational and executive qualifications and her emphatic confidence about the future of onecoin. Though for some people in the crypto world, onecoin was a pure scam because onecoin has no blockchain or network associated with it. The onecoin founders acquired popularity by selling educational materials which can be traded, which can be purchased by their members at £100 to £118,00. The packages gives onecoin which could be exchanged for fiat money, but this could be done only on the private xcoinx exchange, and also in limited quantity.
Onecoin gave out notice on march 1, 2016 that it would stop trading for about two weeks for maintenance reasons and better integration with blockchain.
On 15 march 2016, it's market was opened with no much changes. And finally shuts down few months after.
Greenwood has been arrested and Ruja Ignatova vanished.
Reference
Reference
Reference
Reference

To what extent have Crypto scams affected the Crypto space?

Crypto scams have really affected the cryptoworld in so many ways. With the rate of scam from the internet, many who would have wanted to invest in crypto are having change of mind with the mentality they might loose their money, but that's if they fall into the wrong hands. In our present day crypto scams have reduced so many to Notting, those who lost their investments to scammer.
Seriously, the fear of been scammed can make one not partake in the cryptoworld thereby reducing the growth in the crypto space. Because of the level of scam in the crypto, Government authorities in some countries have restricted the buying and selling of crypto to help secure lives of the citizens.

Will regulations in Crypto add value to the Crypto space?

The crypto world is not been regulated by any Government authorities.
Regulation might subdue trading values of cryptocurrencies but on the other hand if the regulation is handled adequately, might help in stabilizing the market, encouraging more investments and development.
When been regulated might make crypto market less prone to manipulation and scam and this could also make cryptocurrencies increase in value. But whether regulated or not, the cryptoworld still remains unpredictable, so one should be careful when investing.