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How to Identify a Cryptocurrency Con Game

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How to Identify a Cryptocurrency Con Game

Cryptocurrency has taken the world by a storm revolutionising financial institutions and payment systems. However, Cryptocurrencies have also become the target of fraudulent characters who target crypto users. There are different ways these fraudsters dupe crypto users of their money. It is, however, imperative that you know what these scams are and protect yourself from them

Signs You are about to Fall for a Heist

There are telltale signs that you are about to be the victim of a crypto scam. You can identify these signs by looking out for the following;

  • Is the website secure? You have to ensure that any crypto website you log into particularly for payment has an address that starts with “https” instead of “HTTP”. If this is not the case then the website is not secure and any data you send to the website will be compromised. 
  • Sometimes, scammers duplicate a website or crypto product and you might be on a scam website. You have to ensure that the website’s URL is free from spelling and grammatical errors as this can be a sign that it is a scam.
  • What does the website say? Most often scam websites do not have an “About us” page and details about the people behind the company can be shady. For instance, when you check for the names of the company’s founder, you might not find him anywhere on the internet or find out he is associated with shady dealings. That is a sign that you shouldn’t invest in whatever the product is about. Legitimate cryptocurrency projects are usually transparent about their founders, investors and people involved in the project

Sometimes scammers take the time to ensure they cover their tracks properly. Times like these, you just have to trust your instincts and check out for any red flags.

Crypto Pitfalls to Avoid

Now that you know how to check for cryptocurrency scam alerts, you need to know the common crypto scams and how to avoid them.

Ponzi, pyramid and MLM Schemes

A Ponzi scheme promises investors huge returns. But the truth is that Ponzi schemes pay older investors from the investment of newer instors. It is a typical example of robbing Peter to pay Paul. So long as there are new investors a Ponzi scheme will pay its investors. Convinced that the scheme is legit, investors who have received their payouts will convince newel investors in. These investors will pump in their money into the scheme and sooner or later, the scheme collapses and the founder is nowhere to be found.  

On the other hand, multilevel marketing (MLM) schemes claim to sell a product but to earn from the scheme you have to bring in more people. You earn from your downlines. So you might end up advertising a product to your family and friends who might earn nothing from the so-called product.

To save yourself from falling into the hands of fraudsters, always ensure that you avoid schemes that promise outrageous returns. Also, be on the lookout for cryptocurrency projects that promise to give you profits for introducing new investors to enjoy bigger profits.

Fake Wallets and Exchanges

So many exchanges exists and a newbie in the cryptosphere can easily fall prey to fake exchanges and wallets. These exchanges bear all the markings of a real and legitimate exchange but they are out to cause harm to unsuspecting users. Most of these exchanges have even been found on Google play store making them look like legitimate apps.  A typical example is Poloniex which had duplicated apps hoping to swindle unsuspecting users. They almost succeeded as they had gotten 5,500 downloads before it was flagged down by Google.

Once you download these fake exchanges and wallets, they can steal important account details or restrain you from retrieving your money. To be on the safe side, read reviews about wallets and exchanges before downloading them. Also, do not download random crypto apps from Google Play. Ensure that the apps are well known, trusted and have real people behind them and not shady characters.

Phishing
A more familiar scam is Phishing.  Scammers send you unsolicited emails that look like they were sent from you bank and a click will take you to a site that once you input your account details they can log into your real account and cause devastating damages. To avoid phishing scams, you have to ensure to double check URLs before proceeding to click the link. Protect your private key and never disclose it not even to someone who claims to be from the exchange.

While this is not a full checklist of crypto-related scams they are very common. You have to ensure that you protect your self from falling a victim. A lot of persons have fallen prey to scam crypto projects. In April 2018, more than 300,000 investors lost a total of $660 million to an MLM scam called Pincoin and iFan ICOs. Equally, in January 2018 Bitconnectwas criticised for being a Ponzi scheme and promising investors 40% returns.

Do you know anyone who has fallen victim to a crypto scam? Have you noticed any suspicious crypto product? Share your opinion with us in the comment section below.

Image credit: Pixabay

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Blockchain News

Kudi Exchange is Live in Beta Testing

What else makes Kudi Exchange special? It is the first and only exchange in West Africa to offer a U.S. Dollar backed stable coin through our co-marketing partnership with Gemini

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Kudi Exchange is Live in Beta Testing

Ferrum Network in a Medium Post announced that it’s first product — Kudi.Exchange — is now live in beta testing with over 400 users in the pilot and 2500 more signed up!

This is big news for Ferrum Network because we built and launched a world-class exchange and payments product on a seed budget.

But it is even bigger news for the people of West Africa who for the time first time can purchase a U.S. Dollar backed stable coin with fiat and send fiat currency peer-to-peer instantly with no third-party intermediaries. We are proud to introduce Kudi.Exchange — A Digital Currency Exchange + Peer-to-Peer Payments App with U.S. Dollar Stability.

It’s a Fiat Gateway, But Runs on the Ferrum Network

What is Kudi.Exchange? It is a fiat-to-crypto exchange + mobile payments app based in Nigeria that runs on top of our network. With Kudi, users can buy digital assets directly with fiat. It is the fastest, lowest cost and most advanced digital currency exchange in Nigeria.

Why Nigeria? Nigeria is a massive crypto market. It has the 7th highest BTC volumes in the world, 1st in Africa, highest Google searches in Africa for “bitcoin”, a population of 200 million with 50% under the age of 35, and an existing financial system that is ripe for disruption.

Competing exchanges that offer far less regularly achieve $5 million USD in monthly volumes. With such a large market with low incumbent competition, we look forward to offering this product to millions of customers.

Faster Speeds, Lower Costs

How do we achieve millisecond transactions at lower cost than our competitors? Simple — the backend of Kudi.Exchange is running on the Ferrum Network— a high-speed interoperability designed for low cost financial applications. This means users can buy/sell/send digital assets faster and for less network fees than other exchanges.

The Only Exchange In West Africa to Offer U.S. Dollar Stable Coin

What else makes Kudi.Exchange special? It is the first and only exchange in West Africa to offer a U.S. Dollar backed stable coin through our co-marketing partnership with Gemini

Like many emerging markets, the demand for U.S. Dollars in Nigeria is high, but physical dollars are difficult and costly to obtain. Now for the first time, Nigerians can access digital U.S. Dollars through an app. They can rest assured those assets are backed by a fully-regulated trust company, Gemini.

Our market tests indicate that demand for a U.S. Dollar stable coin is incredibly high, and we are proud to offer our customers easy access to this critical safe haven asset.

It’s Also An Instant Peer-to-Peer Payments App

Perhaps the most exciting aspect of Kudi has nothing to do with cryptocurrencies. Remember — the market for people who deal only in fiat is far larger than those interested in digital currencies.

Therefore, Kudi also functions as a peer-to-peer mobile payments app for instant fiat money transactions. Our customers can now send Naira to each other instantly with no banking intermediaries at a fraction of the cost of a traditional bank app.

How is this possible? The Kudi.Exchange mobile wallet also doubles as a payments app. Users simply deposit their Naira into the app, enter the address of the recipient, and “send”. Customers can also send money to non-customers through their phone number or What’s App number, and the recipient will be prompted to download the app to receive the money. Since this all runs on Ferrum Network tech, the Naira is transferred in milliseconds, and it never goes through a third-party.

Normal banking apps in Nigeria can take up to 24 hours to send money, and charge fees on everything from minuscule transactions to using cellular data! With Kudi, users can now send Naira instantly peer-to-peer at a fraction of the cost. We are now talking to merchants who are interested in using this app to replace costly point-of-sale system, and who want to incorporate a fast, cheap, mobile payment solution.

More Transactions = More Burned Tokens

What does all of this mean for token holders? Well for now the exchange is running on a limited private Mainnet. But when the full Mainnet goes live in a few months, users will be spending FRM tokens for every transaction. Remember: every transaction that runs on the Ferrum Network burns FRM tokens.

With thousands of Nigerians sending Naira to each other, and buying/selling digital currencies, this will have an immediate positive impact on the Ferrum Network ecosystem.

In other words, Ferrum Network will be the first project with users, daily transactions and network utility on day 1 of main net launch.

Designed to be Replicated in other Markets

Finally, the best part is that this solution is not limited to one country. The technology is designed to replicated. We can easily import this solution to other emerging markets, and partner with existing exchanges who want to incorporate a U.S. Dollar stable coin and instant peer-to-peer fiat payments. And since it all runs on the Ferrum Network, the more we expand, the more it benefits the ecosystem.

Thank You to Everyone Involved

We want to thank TLG Ventures for being the driving force behind Kudi.Exchange. We also want to thanks all of our pilot users who are making sure the product is as great as it can be — you know who you are. Finally, we want to thank the Ferrum Network community for sticking with us since the early days. We could not have done this without you.

Coming Up Next

Since Kudi is still in the pilot, we will be sending weekly traction updates on our progress. You’ll also get updates on specific aspects of Kudi, including our user acquisition strategy, and expansion into other countries and other services (e.g. merchant point of sale).

Of course all of this is leading up to a token sale (details to be released soon) so YOU can get involved in Ferrum Network!

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Blockchain News

An Overview of SaBi Exchange

SaBi Exchange happens to be the most advanced centralized Cryptocurrency Exchange in Africa. Find out more in this review by cryptowisser.
#BUIDL

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An Overview of SaBi Exchange
An Overview of SaBi Exchange

There are currently over 15 cryptocurrency exchanges in Africa with about five centralized cryptocurrency exchanges in Nigeria. However, among these exchanges. SaBi Exchange happens to be the most advanced centralized Cryptocurrency Exchange. SaBi Exchange was launched 10 March 2019. It was founded by Lucky Uwakwe and Peter Huang. Lucky Uwakwe is a graduate of Nicosia University in Cyprus and has earned a Masters Degree in Cryptocurrency and Blockchain Technology. He is the current Ambassador of Dash Cryptocurrency to Africa, Founder of Cheetah Africa and a citizen of Nigeria.

SaBi Exchange is based in Abuja Nigeria.

Huobi Partnership

The exchange is powered by Huobi Cloud and has the same security and liquidity features as Huobi. SaBi Exchange has partnered with Huobi to deliver outstanding crypto trading services to the region. According to the review from cryptowisser. It has not been able to verify the details of the Huobi partnership with SaBi Exchange and as such investors are advised to read this partnership details with caution. SaBi Exchange allows cryptocurrency deposits and fiat deposits on its platform with limitations.

Deposits

US citizens aren’t allowed to deposit fiat currency into the platform while some listed countries are allowed to deposit fiat currency. The countries allowed to deposit fiat currency on SaBi includes China, South Korea , Canada, Russia, Britain, India, Australia, Switzerland, Brazil, Taiwan, NewZealand, Singapore, Vietnam, Nethaland, Hongkong, Nigeria, Indonesia, Philippine, Cambodia, Middle-east, Malaysia, Myanmar, Turkey. Fiat deposits through Wire Transfers and Card Deposits are allowed using Qiwi, Paytm, Paynow etc. However, Cryptocurrency deposits are allowed by users worldwide.

Trades And Fees

Aside from the normal trade features, SaBi offers four types of trades. They include OTC-trading, Margin, Exchange and Leveraged Trading. The OTC-trading feature of Huobi Exchange comes under the following currencies—USDT, BTC, ETH and EOS. SaBi Exchange offers 2x to 5x leverage. The leveraged trading features are available on 41 trading pairs out of the 240+ trading pairs available for regular exchange trade. It also offers 0.20% trading fees on both makers and takers which is slightly below the normal 0.25%  fee charged by other exchanges worldwide. It charges a withdrawal fee of 0.0005 BTC. The withdrawal exchange fee charge is approximately 40% lower than the global exchange fee charge.

SaBi Security

SaBi uses the Huobi security protocol “Huobi Cloud” to secure its platform against hack attempts. It equally shares the Huobi liquidity to ensure a liquid trading platform for its users. The exchange platform boosts of speed and faster transactions on trading of cryptocurrency on its platform. Fiat deposits are available through wire transfer and debit cards with a good security feature ensuring the safety of users account details in Nigeria. Fiat deposit can also come through Paynow, Paytm, Qiwi, IMPS, UPI or Interac e-transfer on the platform. SaBi has developers with over 6 years of experience working with Huobi and Huobi Cloud.

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Bitcoin News

PAXFUL IN THE NEWS FOR THE WRONG REASONS

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Paxful In The news for the Wrong Reasons

It is no news that Paxful stands as one of the renowned bitcoin trading platforms in the world. Interestingly, the company has built a global reputation in the few years of its existence having established one of its biggest markets in Africa.

 

According to Paxful Team, over 300 ways exists through which payments can be made for the purchase of bitcoins. Among the lot are through the use of:

 

  1. Gift Cards– iTunes, amazon, OneVanilla Gift Cards VISA?MasterCard,Target, GameStop, BestBuy,walMart and many more.

 

  1. Cash Deposits– Western Union, MoneyGram, Bank of America, Wells Fargo, COOP Credit Unions, TD Bank, SEPA, National Bank transfers Nigerian Banks, SEPA, Wire transfer(domestic and swift) to mention a few.

 

  1. Online Transfers– PayPal, Serve to Serve, Skrill, NetSpend, PerfectMoney, OkPay and other major online wallets

 

  1. Digital Currencies– Ethereum, Litecoin, Eos, Tether, Cardano, Monero and including many other new coins and tokens.

 

With all these services available on the paxful exchange, one would rather believe that there exist a very healthy communication flow between the company and the customers. However this doesn’t seem to be the case as many traders on the platform recently observed an unexplained denial of access to their accounts.

 

Nigeria which happens to be the company’s biggest markets in Africa and is second to the Paxful market in America, have continued to support the company via continuous use of the platform.

With these locally done transactions which have to a great extent, generated huge capitals for the company, one would think a well structured company such as Paxful would have the courtesy to put in place a stand-on live service center which would act as support center and play an active role in resolution of complaints between customers and the global business magnet.

 

Unfortunately, reports reaching us is that Paxful makes use of Bots rather than Humans in attending to support-related issues and even in dispatching mails. One would argue that the above allegation if true, might not hold water as any company – in a bit to promptly service the needs of her clients, can adopt the use of any available means to disseminate information. However, if the said purpose for the adoption of automatic mailing and communication is defeated, then there is obvious need to raise and eye brow on Paxful’s transparency.

 

Recently, a number of Paxful Users took to twitter to tell their story of how Paxful had illegally frozen their accounts and have since started a trend “PaxfulNGisAScam”

 

These negative comments began a while after the Bot support stopped responding to the numerous support tickets. Paxful’s Under-performing customer relations might have done just enough to earn it a name in the blacklists of Cryptotraders and investors.

 

It is expected that Paxful and  CEO Ray Youssef  will respond to these allegations in an official statement or maybe their bots will do just that. Let us know your experiences.

 

In the mean time we ask questions like: Is this yet another reason why we need decentralized exchanges?

 

 

Disclaimer:

The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Also, this content does not in any reasonable way, seek to promote negative news or information about Paxful Global. It is solely for informative purposes on the and should only be intrepreted as such.

Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Blockchain News

Bittrex Suddenly Aborts Plans To Host Its First IEO

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Bittrex Suddenly Aborts Plans To Host Its First IEO

Cryptocurrency exchange; Bittrex International has aborted the initial exchange offering (IEO) of the RAID token after gaming analytics company OP.GG terminated its strategic partnership with the South Korean startup RAID.

Cryptocurrency exchange; Bittrex International has aborted the initial exchange offering (IEO) of the RAID token after gaming analytics company OP.GG terminated its strategic partnership with the South Korean startup RAID.

Bittrex Exchange had announced to host its first IEO for a token called XRD but suddenly refrained due to “‘last minute” significant problem as confirmed by European Exchange Bittrex.

“We decided to cancel the IEO as a result of significant changes in the business status of RAID” – Team Bittrex.

The token offering was scheduled to go live on 15th March at 10 am (UDT). But was suddenly canceled on the 14th which according to Bittrex, this partnership was a “vital part of the RAID project,” which aims to reward gamers for sharing data.

Meanwhile, OP.GG, which claims that it has 45 million monthly active users, announced that it “has stopped all potential business discussions related to RAID project and there will be no economic and technical cooperation with RAID coin.”

However, since this partnership was a vital part of the RAID project, Bittrex International confirmed that they did not feel it was in the best interest of their customers to push forward with the IEO.

Confirming these words from Bittrex International; tweets from them had this saying

‘trust and integrity are the most valuable assets”.

Bittrex International is the crypto exchange’s response to a similar platform launched by its market competitor Binance – Binance Launchpad.

In respect to the gaming; with the token sale, the South Korean gaming platform was aiming to raise $6 million selling 17 billion XRD tokens. Payment option with Bitcoin was only available on the platform and each token was valued at 0.00000010 BTC. RAID had also set minimum and maximum purchasing limit of the tokens at 30,000 and 57 million respectively.

Moreover, as at last checked, RAID is still silent and haven’t divulged a thing yet about the whole saga.

 

 

Disclaimer: Statements on this site do not represent the views or policies of anyone other than ourselves. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities

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