Scams In The Cryptoworld.. What You Should Know #003

jueco (76)in Tron Fan Club • last year

Withs a joyful heart I come before this great Community today to discuss on another issue of great importance.

I believe you are all doing perfectly fine and are enjoying your activities in this community.

In our last meeting, we discussed on some available crypto scams and today we shall continue our discussion so as to enlighten users in this community.

CLOUD MINING SCAMS:

Cloud mining scams is a type of cryptocurrency scams whereby investors/individuals are promised the opportunity to mine cryptocurrency like ethereum, bitcoin without the compulsion to own a mining machine whatsoever.

These types of scams claims to reward it's users with cryptocurrency which can be used as a passive form of income.

The concept behind cloud mining itself is not a scam, cloud mining refers to the mining of cryptocurrency through the use of remote data centers.

The legitimate cloud mining permits it's users to borrow computation power and mining equipment from a third party.

The users then based on their investment receive a portion of the profit gotten from the mining activities.

However, the scam involved in cloud mining often offer unrealistic returns and fails to fulfil all promises.

In cloud mining scams, the scammers usually lack transparency in their operations, they don't reveal information on their location, the type of mining instrument they make use of, where their mining instrument is being stored etc, they keep everything private so that it will be difficult to track them.

Most times, these cloud mining scams usually function as Ponzi and pyramid schemes where only the earliest investors are being paid and the late investors are being used to pay early investors.

ROMANCE SCAMS:

This is another popular type of scam in the world today and it is most commonly done on dating sites.

Here, the scammers takes the appearance of another and chats up an opposite gender or even same gender all in the name of love.

After developing strong relationship with such a person, they then begin to demand for money and other financial assets but most times they ask for cryptocurrency, since it is difficult to track a crypto user.

Then out of love, the prey will send some money and the scammers will vanish with all of the money.