Scams In The Cryptoworld.. What You Should Know #010

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Hello crypto friends,

It is another beautiful day and I am here before you all as usual to discuss on an issue of great importance to the cryptospace.

Everyone on this space is working very hard to earn a living, working either as a curator or as an author but believe me when I say it is not easy to work as a curator.

Although I haven't had the experience to work as a curator but I know it is not an easy job to do.

Having worked this hard, it will be very painful to see our funds being stolen by an unknown individual all in the name of scams.

Today, we shall continue our discussion and learn about more scams, and this way we can avoid these scams by all means.

Without wasting anymore time, join me as we dive into the discourse of today:

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PRE-MINED SCAM COINS

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Pre-mined scam coins can be explained to be a type of cryptocurrency scam whereby a specific number of coins is created and allocated to a special group of individuals before the coin can then be accessed by the public.

In this pre-mining activity, the creators often gain an advantage over other investors thus leading to the harm of other investors.

In the cryptospace, mining is often understood to be the addition of new transactions to the blockchain and a creation of new coins given to miners as a reward for their computational work in verifying transactions.

The pre-mined scams however, diverge from this system by giving the creators the opportunity to generate a huge amount of coins before the lunching of the project.

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One main issue associated with pre-mined scams is it's unfairness and lack of transparency involved in its coin distribution process.

Instead of equally distributing the token number amongst users,, they tend to give a particular set of individuals more token, thus leading to power imbalance in the system.

And this can thus lead to a dangerous manipulation in the cryptomarket as the developers can easily inflate and deflate the price of the token to their advantage.

Also, the developers of this project often promise a huge and quick profit return which inturn lure other investors, and then when the coin is being traded openly, they rug-pull it and run with all the funds of other investors.

In some cases, the developers just disappear from the project and leave other investors hanging, with no way to get their funds back.

To avoid falling victim to this type of scams, investors should ensure to carry out extensive research on a project before investing in it.

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CONCLUSION

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It is very important that we all be at alert in the cryptospace slas there are so many scammers out there looking for ways to rub us of our hard earned money.

In our next meeting, we shall learn something more unique, stay tuned 😊