The topic of Cryptocurrency has taken a huge toll in this Bitcoin era. It has become a highly popular topic to debate and put into practice. People have also been able to make actual money with Cryptocurrency. It has also provided new benefits to the public because of new technologies. The crypto industry’s popularity is growing by the day, which means criminals are seeking to get a piece of the action.
People are still puzzled about how to earn and invest in Cryptocurrencies because their popularity is constantly growing. Scammers take advantage of the benefit of the doubt and depart with other people’s money. Let us go through some of the most common crypto scams to exist. We shall delve into a few of these scams that have affected the reputation of cryptocurrency in the market. That’s why it is most important to find and choose a safe platform like https://bitcoinscircuit.com/ for crypto trading. Over 4 billion dollars have been lost because of the five frauds listed below, alone.
Scams done in Cryptocurrency
- PlexCoin – PlexCoin’s initial coin offering (ICO) was dubbed “one of the largest frauds in Cryptocurrency history” because it defrauded investors out of more than $20 million. The assistance of the US Securities and Exchange Commission was required to end this program. Customers who invested in this program received a return of more than 1000 percent on their money. It is evident that something is fishy about PlexCoin, as their return rate was too good to be true.
- Savedroid – Because of the activities of its founder, Yassin Hankir, the ICO Savedroid was regarded to be one of the bravest and largest hoaxes. He shared a snapshot of himself on social media, showing him enjoying the beach. The caption on the photo stated “over and out,” which the public misinterpreted.
They assumed he was fleeing with the money of the investors, which totalled $66 million. This turned out to be a publicity stunt and held no weight at all. However, this episode significantly weakened investor trust. The investors also filed multiple lawsuits because of this move.
- ACChain – ACChain was a well-known ICO that originated in China, particularly in Shenzhen. With the faith of its investors, this ICO quickly raised about 80 million dollars. Nevertheless, not long after, everything became evident, and it became clear that this ICO could not be trusted. The public was given access to a snapshot of their headquarters. There was nothing in the shot but a vacant room. After the leak, the company’s components began to vanish, and it was quickly wiped away without leaving a trace.
- Pincoin – Pincoin was yet another major hoax that frightened investors. It was a Cryptocurrency from Vietnam. It raised $870 million from more than 32,000 people around the country. The investors never received their money back; instead, they were given new tokens called iFan. The developers behind Pincoin vanished shortly after the tokens were distributed, as did the money that had been gathered. They were never discovered or located after they vanished.
- Bitconnect – Bitconnect has been voted the largest fraud out of all of the others. It appears to be more trustworthy than the other Cryptocurrencies based on the name of the ICO. Because Bitcoin is a trust ICO, anything using the name “Bit” seems extremely credible to the public.
Bitconnect offered a 40% return on investment to its investors. This was not a “too good to be true” scenario, but rather a realistic one that earned the confidence of investors. However, it culminated in a phony fraud to steal the money invested. It was a Ponzi scam, in other words. The ICO disappeared with a massive sum of money, estimated to be approximately $3 billion.
Scammers take advantage of the benefit of the doubt and depart with other people’s money. Bitconnect has been voted the largest fraud out of all of the others in this Bitcoin era. Pincoin was yet another major hoax that frightened investors. People have also been able to make actual money with Cryptocurrency.
We can get into a more detailed discussion regarding these Cryptocurrency frauds to understand the patterns that are common for almost every fraud scheme in the market. PlexCoin’s initial coin offering (ICO) was dubbed “one of the largest frauds in Cryptocurrency history” because it defrauded investors out of more than $20 million. Over 4 billion dollars have been lost because of these five frauds alone. It has also provided new benefits to the public because of new technologies.