Steemit Crypto Academy |Season 3 week 6 - Crypto Scams and how to avoid them

INTRODUCTION

Good day everyone, it's the 6th week of the steemit crypto academy season 3 and this week topic by @yohan2on is on Crypto Scams and how to avoid them enjoy as you read through

Let's get started

Source

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

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What are Crypto scams
Crypto scams is a way of hijacking someones crypto through an illegal means or intruding in to a cryptocurrency user's account without permission from the owner of the account.
Crypto scam are scams done on crypto investors or crypto trader it can come in any form which can be fake app email scam social media

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• FAKE APP: scammers create replical app's
  Of the original app of an exchange,here scammer just change little thing that makes it look like the original application and by this means they get useful information for them to get access to their cryptocurrency funds this is why all crypto users should be carful of app they use or download because we have so many scam application on play store.

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• EMAIL SCAM: scammers do play on people's intelligence in a way that, they will send fake email to users that will look as if it was sent from the original exchange and any users that falls for this trap will be definitely ripped off of his account and this has made some investor lost their live savings.

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• SOCIAL MEDIA SCAM: most people fall for social Media scam because so many people are always active on social media.
  Scammers post fake airdrops opportunities and when people hear about airdrop they always rush it and some might be just to take people's fund and take it away, so as trader should be careful of fake airdrop on social media.

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EXAMPLE OF CRYPTOCURRENCY SCAM

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Source

AIRBITCLUB
Airbit club is a coin charged for ponzi scheme and money laundry by the U.S department of justice, they made investigation probe on the team that created the coin and they where charged to court and the allegations was that they Scammed people of ten millions of dollars from ponzi scheme.

This scheme was launched around late 2015 and was later sold some kind of multi level marketers who encouraged investor to part with cash and as time go on this investors where having issues with withdrawal and when that lodged complain they said they must bring referral before they can get money back.

• The news reference : The news was published on source

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To what extent have Crypto scams affected the Crypto space?

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Is so sad and unfortunate that crypto scam has caused a lot on havoc on investors and traders of cryptocurrency and crypto space.
Crypto scam had made some people lost all they had in life, some where scammed and they went ahead to commit suicide why some was turned to a complete wretched person in which they lost their live savings to crypto scam and the Can't fend for their self again.

Crypto scam has made a lot of people lost trust on cryptocurrency because they've been Scammed once or twice so because of this they couldn't trust any cryptocurrency project and some cryptocurrency has lot value due to scam because when people heard of a scam case they quick withdraw their funds from such cryptocurrency project and this weakens the strength of some cryptocurrency.
That's why some many dumped cryptocurrency project, they can't proceed anymore due to all this scam issues.

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Will regulations in Crypto add value to the Crypto space?

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Yes!!
Crypto regulations will add value to crypto space because if all loop holes in which scammers can penetrate through are blocked and well secured people will regain more trust in crypto blockchain and the value of some dead crypto will come back to live and start growing and if we have so many working crypto in the crypto space it provide more opportunity for users to get funded because not everyone can Afford to buy BTC or ETH so if the new crypto are growing people with small fund can easily benefit from it but if there is no regulations in the crypto space we will have not too much cryptocurrency that is working.

When there is regulation in the crypto space it give the crypto space strength to dominate over the normal currency,currently we only have few institution and company accepting cryptocurrency as payments but when regulation is done and scam is reduced people will have more trust on crypto.

CONCLUSION

On a final note, crypto scam has caused a lot on both crypto space and crypto community as a whole,it has made some people lost so much,though it can still be avoided all investor and trader just has to be careful not the cryptocurrency they invest on and the most do proper findings on the crypto to know whether the crypto is scam or not.
Thanks to @yohan2on for the wonderful lecture