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The History of Cryptocurrency Scams that you are completely unaware of

One can never deny the fact that the Crypto market, since its evolution, is consistently trying to expand its boundaries all around the world.

However, there always has been a silent hesitation among the majority of the population whenever it comes to choose crypto transactions over traditional ones.

Well, if observed with logical data, it can clearly be seen that most of this fear of crypto lies in the fact of it lacking the required security as well as privacy.

This brings us to the topic that is very often discussed in the market but is literally an imperative one, i.e., Cryptocurrency Scams.

Well if you look back at the history of Cryptocurrency Scams, you will notice there have been more than millions of crypto investors who have actually been scammed out of prodigious amounts of real money. In fact, the year 2018 alone witnessed crypto scams of worth US$1.7 billion.

After thorough research on the crypto scams, it is quite clear that while some Fraudsters Rely on highly automized as well as sophisticated tools to execute their plans, others play their games with traditional methods like tried-and-true Ponzi schemes.

Well after all this data, the most obvious question that might pop in your mind is How and Why do these investors, the experienced players of the market, end up being terribly scammed?

This doubt will be better solved if we go through the fraudster and their techniques of executing the scam:

The Traditional Ones

These are the fraudster who rely on the traditional ways of executing scams. They, in simple terms, identify the person’s need and greed and respond according to that.

The best example of this could be seen in the form of iCenter, a firm run by an unknown group of entrepreneurs. This basically a Ponzi scheme for Bitcoin as well as Litecoin.

Moreover, quite interestingly, this firm doesn’t provide any detail on investment strategies but somehow assures the investors 1.2% daily returns. Isn’t that weird?

The Ones With a Bag of LIES

These are the scammers who choose the straight-up deception process. They come up straight with enormous layers of lies that seems to be true when elaborated with fake data.

The best example is to consider the case of OneCoin scam. It was later revealed that the founder of this fake cryptocurrency actually scammed an enormous amount worth of $3.8 billion. And all of this just by convincing people that their nonexistent crypto is undoubtedly real.

These fraudsters rely more on technological frauds. For example, the Global Trading scammers used a Telegram Bot which would respond with fake information whenever investors checked in for Balance Inquiry. They would display fake amounts where the actual was quite low.



This post first appeared on Coin Market, please read the originial post: here

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The History of Cryptocurrency Scams that you are completely unaware of

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