Cryptocurrency scams are rapidly increasing around the globe, Cryptocurrency is one of the ways you can use to make money through scamming.
In this post i have taken time to explain various cryptocurrency scam formats and how you can engage/benefit from it.
What is cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography to secure and verify transactions and to control the creation of new units. Cryptocurrencies operate independently of central banks and can be exchanged directly between individuals or groups without the need for intermediaries like banks or payment processors.
Examples of cryptocurrency
Types of cryptocurrency format scam
We have ways (formats) you can use scam victims and I have listed/explained them below!
Fake ICOs (Initial Coin Offerings)
In this scam, you create a new crypto currency and sell it to investors through an ICO. The investors may believe that the new currency has a lot of potential, and may invest large sums of money. However, the currency is often worthless, and the scammers disappear with the investors’ money.
You have to create fake cryptocurrency and a professional-looking website to promote it. You also create a white paper, which outlines the technology behind the cryptocurrency and the proposed use cases.
You use social media and other online platforms like Facebook, Instagram, twitter e.t.c to promote the fake ICO, often targeting people interested in cryptocurrency and blockchain technology.
Once people invest in the fake ICO,you disappear with the money, leaving investors with worthless tokens. In some cases, You may continue to promote the currency for a while, artificially inflating the price before they disappear.
Fake wallets and exchanges:
Here you can create fake wallets or exchanges, and encourage users to deposit their crypto currencies into them. The scammers then steal the users’ money and disappear.
The fake website is designed to look professional and legitimate, with a similar layout and design to the real site. It Will ask people to enter their login credentials or personal information, or it may prompt them to download a fake wallet app.
You send emails or messages that look like they come from a legitimate company or website, but are actually fake. These messages may ask users to enter their login credentials or other sensitive information. If users fall for the scam, the scammers can use their information to steal their crypto currencies.
You can also be Offering fake crypto giveaways, you can create fake social media accounts that claim to offer free cryptocurrency giveaways. You may ask users to send a small amount of crypto as a “transaction fee” to receive the free cryptocurrency. Once the user sends the crypto, the scammer disappears with the funds.
Crypto Ponzi scheme
A Ponzi scheme is a type of investment scam that promises high returns with little or no risk to investors. The scheme pays returns to earlier investors using the capital contributed by newer investors rather than from legitimate profits.
To use the Ponzi scheme to scam you need to offer unrealistic returns on investment to lure unsuspecting investors into Your Ponzi scheme. You can claim to use sophisticated trading algorithms or other investment strategies to generate high returns. The promised returns can range from 20% to even 100% per month.
You can also use the referral bonus method, Here you use referral bonuses to incentivize investors to recruit new members to join the scheme. These bonuses can be in the form of crypto coins or fiat currency, and they increase the potential size of the Ponzi scheme. The earlier investors benefit from the referral bonuses, while the new investors are the ones who lose their investments.