Connect with us

Exchange

How to Identify a Cryptocurrency Con Game

Published

on

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.

Spread the news
Advertisement
Comments

Adoption News

Digital Assets Exchange Luno Launches Cryptocurrency Literacy Tour For Varsities in Nigeria

Published

on

Owenize Odia, Country Manager for Luno Nigeria facilitating a session at the recently launched Cryptocurrency literacy Tour for Universities by Luno

Luno has kicked off its cryptocurrency adoption program for Nigerian universities dubbed “Cryptocurrency Literacy Tour for Universities” launching out with the University of Lagos as the first of a series of tour where it will go about canvassing for the favourable adoption of cryptocurrency through knowledge in 6 Nigerian universities.

Luno, an exchange based off of South Africa was launched in 2013. It has since continued its growth trajectory by adding new users across 40 countries spanning more than 4 continents. It presently boasts of up to 3 million registered users across its platform with Nigeria as one of its biggest market.

Speaking on this development, Owenize Odia, the Country Manager for Luno said:

We are committed to educating our customers given the nature of the market and the tendency for people to fall into the wrong hands while online

With its debut tour kicking off in Unilag and having 300 youths in attendance, Luno is clearly taking the charge to bringing about perceptual shift and a favorable disposition towards cryptocurrencies which it says has not been properly understood. Through its representative Odia, it argues that the current financial systems was built for a non-digital age, ignoring the needs of the modern individual. Citing on the decentralized nature of a peer to peer digital currency like the bitcoin, it is not dependent on any central government or authority as obtainable with fiat.

She continued by saying

We are contributing by investing heavily into our Luno Learning Portal, which helps the public, the media, and other stakeholders educate themselves about the facts, opportunities, and risks in the cryptocurrency market,

In her post on LinkedIn, Odia assured the participants and other stakeholders that Luno would continue to focus on awareness initiatives such as this in Nigeria and Africa at large, thereby providing a reliable platform where just about anyone can visit either buy or sell cryptocurrencies.

Spread the news
Continue Reading

Exchange

Cryptopia Capitulates, Appoints Grant Thornton as Liquidator.

Published

on

Cryptopia Caputulates, Appoints Grant Thornton as Liquidator

New Zealand based Cryptocurrency Exchange which was hacked in January 2019 Cryptopia capitulates, appoints Grant Thornton as Liquidator in its move to start settling affected platform users.

This decision was reached according to the liquidator’s press release that the management after efforts were made in an attempt to return the exchange to profitability which proved unsuccessful and as such it became the interest of all stakeholders to liquidate the Company.

Liquidator David Ruscoe was quote saying,

We realize Cryptopia customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders,

According to the Liquidator, the process is expected to span into months due to the complexity of the situation.

However, they (Liquidators) are focused on securing the assets of all stakeholders for their benefits and as such during this period, exchange activities will be suspended.

They further went on to say they are working with relevant authorities and independent experts as it concerns the exchange’s legal obligations.

In spite of this, as the news reached CryptoTwitter, the news of the liquidation has met a combination of pity, sadness and vexation of users of the Exchange with one saying and comparing Cryptopia to Binance

Another user felt he has been cheated and commented thus

Before its hack, Cryptopia was home to a large number of listed tokens and coins which attracted many Cryptocurrency Traders.

Despite the clamour for ultra-high security in exchanges and the call for users to hold their digital assets themselves on their private key held wallets, users still hold their assets on exchanges which are a prime target for hackers.

Recently on the 7th of May, Binance was hacked and it suffered a substantial loss of about 7000 BTC worth about $40m as at that date. Though it was a dent on the whole industry, the exchange reported it will indemnify all loss via its SAFU Fund.

The comparison of Cryptopia to Binance speaks volume of the nature of the industry. It’s better to exchange assets on an exchange that has insurance than those which doesn’t.

It’s also better to be outrightly transparent as Cryptopia was in liquidating the firm and settling stakeholders.

However, the question that must be answered is, will the small guy in a remote village of a third world country with assets on the exchange valued at about $50 or less receive indemnification? If yes, to what extent?

To answer this, let’s wait months to see or worse, years as is the case with Mt. Gox.

Spread the news
Continue Reading

Exchange

Binance Gets Hacked of 7000 BTC

Published

on

Binance Gets hacked

Looks like CZ Would Have to Take Solace via the Liverpool Invite Afterall

Binance has been hacked after several unsuccessful attempts by hackers for a period of one year now as issued in its press release. With this hack, perpetrators successfully carted away with 7000 BTC in a single transaction. The damage could be more in the coming days CZ opines, as the team is taking time to investigate how deep this damage could be.

Binance announced itself to the world and without any doubt becoming the exchange trading platform of choice for most traders in the space. And swiftly, displacing veterans in the space such as Bittrex, Poloniex etc, for top positions, little doubt was left in the minds of many as to the height Binance could attain within the space as the cryptocurrency adoption continues to gain traction globally.

While Binance was making a good name for itself with the mantra “Exchange the world”, hackers were also making plans to ink their activities in the books of history as one of the successful clandestine groups who have successfully carried out a heist on the most popular exchange. February 2018, saw hackers attempt to breach the exchange security systems which was botched as they unsuccessfully got hacked themselves. It was in the news how the hackers themselves got hacked. After successfully targeting and breaching several user accounts via API (Application Programming Interface), the hackers pumped a VIA/BTC  pair by over 10,000% and then immediately sought to cash out by withdrawal. This attempt was botched as the risk management mechanism built in triggered an alarm that automatically froze withdrawal leaving the hackers funds trapped in the exchange.

With controversial entities like McAfee tweeting that Binance exchange has been hacked, Binance quickly attacked him on Twitter that he’s trying to create FUD (Fear, Uncertainty and Doubts).

Responding after some months, McAfee apologized to CZ and the entire Binance Team that he obviously was wrong and CZ offering a cup of coffee when they meet someday, could there be no love lost between the duo?

One thing was clear, CZ shared with his fans how this event obviously was a blessing in disguise and had made his fanbase grow very quickly. This marked a new era for both the Binance Team and their maverick CEO. CZ was always in the news whether for bagging new partnerships, fostering industry growth or even for recent CZ vs BSV Craig Wright Binance delisting.

From yesterday’s hack, and as described by Binance in their press release, it sure looks like the hackers decided to stage a “hackathon” on Binance. The recent hack operation was well coordinated. Took time and patience to execute. Even Binance agreed the modus operandi of these hackers followed the “once beaten, twice shy” route. They were not going to be hasty allowing their funds get trapped again. Alas! They got through with the similar pattern in the past but this time more intelligently.

Apparently CZ had tweeted that #SAFU (Secured Asset Funds for Users) funds will be used to ensure everything is kept under control while the team investigate and try to do implement damage control. Industry Leader and TRON CEO, Justin Sun has offered open support for Binance offering to transferring 7000 BTC to the Binance wallet and buying BNB and USDT to help stabilize the situation.

One particularly interesting part of the AMA session held few hours after the unfortunate hack incident is that CZ and his teams are putting all options on the table in ensuring this issue is salvaged. One of such is a reorganization of the bitcoin blockchain network. This is already sparking heavy debate across social media. This option even though earlier considered has been dropped as outlined in his tweet.

Let’s not be quick to forget at that nicely designed parcel CZ unveiled on Twitter sent to him by Liverpool FC, looks like this is actually a great time for CZ to honour that Liverpool invite he brandished via his Twitter account considering how exciting the club is right now after the 4 – 0 thumping of Barcelona at Anfield last night in the UEFA Champions League Semi Finals clash.

Spread the news
Continue Reading

Exchange

Bitcoin Trading at $6000, Ether at $173 at Bitfinex.

Published

on

Bitcoin Trading at $6000, Ether at $173 at Bitfinex.

An Opportunity for Arbitrage Hunters?

Bitcoin trading at $6000 on Bitfinex presents arbitrage opportunities for traders at a market volume of $38.9 million in Bitfinex. This is $300 over the reported price in Coinmarketcap as at Press time presenting arbitrage opportunities to traders.

Ether the second top cryptocurrency by market capitalization is trading at $173 as against the reported aggregate in CMC of $164. This is an interesting opportunity for arbitrage seekers. Sure appearing like a great opportunity considering some of the major top cryptocurrencies are experiencing some significant value increase in the exchange. This is evidenced with the variance as seen with other exchanges or the CMC reported aggregated data.

Bitfinex which was founded in 2012 and has its headquarters in Hong Kong is currently listed as the 44th top cryptocurrency exchange. This is according to Coinmarketcap data as at press time. It was one of the top and biggest exchanges, prior to the launch of some of the exchanges ahead of it.  However, it has been beset by a wide variety of allegations many of which it has up until now not been able to provide acceptable and substantial evidence to refute.

Arbitrage is a unique opportunity for traders to enjoy unique profits by trading the price differences between two different exchanges. According to Coinmarketcap and Bitfinex price data on Bitcoin and Ethereum, traders can be able to enjoy up to $300 and $10 profits respectively  with Bitcoin trading at $6000 on Bitfinex presenting arbitrage opportunities.

Even more, Bitfinex has recently announced the launch of their IEO in their attempt to raise $1 billion to continue financing its operation. This is expected to happen in the midst of its varied scandalous allegations such as wash trading, Tether’s full value not hedged against the Dollar, inability to provide clarity of Tether’s operative transparency, Bitcoin manipulation.

Bitfinex price data was removed from the data feed of Coinmarketcap yesterday with the sign of an asterisk * which the website says means

“Some prices are manually excluded from the average, denoted by an asterisk (*) on the markets tab. This action suggests price is not indicative of a “free market price”

Hence, its removal by CMC. This is coming after Coinmarketcap set new rules towards ensuring exchange transparency

Arbitrage provides a great opportunity for traders to make significant gains and profits. And as such, users are most likely to troop into the exchange. Be that as it may, many may not be considering the looming scandals and the rationality of the $1 billion funds to be raise via IEO.

Consequently, will anyone because of profit attempt getting into Bitfinex to enjoy Bitcoin trading at $6000 on Bitfinex presenting arbitrage opportunities? Let’s see how the arbitrage hunters react to this.

Spread the news
Continue Reading
Advertisement
Advertisement

Find Us

Address: 7 Kafi Street, Beside City Mall, Shoprite, Alausa, Ikeja, Lagos.

Hours: Monday—Friday: 9:00am–5:00pm

Contact: +234 817 866 6900

Advertisement

Trending

Copyright © 2019 Cryptoptvplus. Powered by Ma media