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Published by: Avidity News
Published on: July 19, 2021
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Cryptocurrency is still a new shift in the digital era. Before you use or invest in cryptocurrency, know what makes it different from cash and other payment methods, and how to spot cryptocurrency scams or detect cryptocurrency accounts that may be compromised.
There are numerous terms of scams in cryptocurrencies including those in investing, or claiming airdrops - a way for networks to distribute initial tokens to the public. Scammers are always finding new ways to steal your money using cryptocurrency.
Some scammers tell you to pay in cryptocurrency for the right to recruit others into a program. If you do, they say, you’ll get recruitment rewards paid in cryptocurrency. The more cryptocurrency you pay, the more money they promise you’ll make. But these are all fake promises, and false guarantees. Regardless of any types of scams, it is important to note that:
- Scammers guarantee that you’ll make money. If they promise you’ll make a profit, that’s a scam. Even if there’s a celebrity endorsement or testimonials. (Those are easily faked.)
- Scammers promise big payouts with guaranteed returns. Nobody can guarantee a set return, say, double your money. Much less in a short time.
- Scammers make big claims without details or explanations. Smart business people want to understand how their investment works, and where their money is going. And good investment advisors want to share that information.
- Scammers promise free money. They’ll promise it in cash or cryptocurrency, but free money promises are always fake.
However, the most notorious of all cryptocurrency scams are airdrops/bounties. These are a sort of 'hidden' scams because although you can fall for 'investment' traps, you essentially lose cryptocurrency through paying fees, which are associated with transactions on blockchains such as Ethereum or BINANCE Smart Chain.
Cryptocurrency airdrop also known as crypto airdrops or simply airdrop is the distribution of crypto tokens or coin usually for free by cryptocurrency startups to a large number of crypto wallets. The companies try to create awareness for their product and gain new follower by distributing tokens to cryptocurrency holders.
Just like any other human activity, scammers have also devised means to deceive unsuspecting crypto users into believing that they are actually into the crypto business. Only when victims had been successfully scammed will they know the airdropping campaign is dubious and fake.
Something you want even less is a private key scam. No legitimate airdrop campaign will ask for your private key, they only request for your public key. Giving out your private key is like opening yourself up for hacking. If anyone asks for your private key, just know the intention is to scam you.
One scam I wanted to point out is the AAVE Network 'duplicate' token scam.
https://www.aavenetwork.finance/sales
Basically, a group of people bought a domain resembling the original AAVE Network and 'made' their own token with the exact name of 'Aave Network' - however, its symbol unnoticeably changed to 'AAVN', very much like the original 'AAVE'. Just like the majority of new cryptocurrency token airdrop scams, this 'AAVN' token also makes you send your own BNB to the admin's wallet address. Refer to picture below:
An interesting thing to note is that the token is on 'presale' meaning that it hasn't even launched and basically it isn't even a real thing. It is just a useless token with no value, and there is no guarantee that it will ever be listed on an exchange.
Like other cryptocurrency scams, there is also a section for 'referrals' meaning that if you invite people to their scam, then you will get rewarded 'virtual' tokens. I am saying virtual because the tokens are not even real. Yes, it could have a contract address but you see, there is no value. Anyone, including you, could make a token/cryptocurrency.
If you take a look at the highlighted sections of the image, they further prove that this is a scam. The owners force you to join their social media, and threaten you that your account will be disabled if you cheat. Their focus is to get social media awareness, so that they can spread their scam to young investors/users in the cryptocurrency realm.
This article was made just to alert you guys on the thousands of existing cryptocurrency scams. Just briefly to come to a conclusion, always exercise your due diligence when making transactions or visiting cryptocurrency airdrops/bounties. Never invest in cryptocurrencies that you think are a scam and have suspicious websites.
Please share this article and drop a like/comment, to help combat cryptocurrency scams.
:)
~ Avidity News
