Over the past few years, a fair few things have changed in the cryptocurrency industry. Currencies have come and gone, as have projects, blockchains, and noteworthy figures. One trend which will always remain is the cryptocurrency scam, in many different shapes and forms. One might start to wonder why such ventures remain so successful even in 2019, albeit a viable explanation is not hard to find.
The Clever Impersonation Scheme
While no one in this world should effectively be “influenced” by anyone when it comes to various cryptocurrencies, it seems these individuals tend to captivate a large audience. That doesn’t mean one shouldn’t pay attention to what individual X, Y, or Z is saying, but their opinions should never be taken to heart at face value. This is especially true when they are promoting a project or cryptocurrency, as those are often paid-for posts.
Scammers now all too well notorious industry individuals will attract a lot of attention. This is also why there are so many impersonators trying to trick gullible enthusiasts into giving up their cryptocurrency holdings. It has to be said, these impersonation attempts have become a lot more convincing as of late. Even so, it is often relatively easy to distinguish between real and fake. It does take a bit of effort, however.
Users Chase the Quick Buck
In this particular industry, there are numerous opportunities to make good money in rather quick succession. Although most of these methods are legitimate, nearly everyone wants a get-rich-quick solution that works for them. Cryptocurrency scammers often promise high returns or even free token airdrops, which will ultimately lead to a loss of funds for the user.
It is evident any project offering high returns, or even a return on the original investment for just “sending over funds”, is a pure scam. These projects are a dime a dozen and can easily be spotted. Unfortunately, it would appear a lot of cryptocurrency enthusiasts are more than keen on giving up their funds accordingly. After all, the promise only has to come true just once to strike it rich.
Hype is a Very big Problem
One thing crypto scammers seem to nail right on the head is how to get users hyped up about their project. In a lot of cases, victims are enticed to “invest now for a limited time” or how they will earn a “bonus of 10% if they invest more than X amount”. It is a very common and clever trick which is almost as old as the scam industry. Even in 2019, it can still make the difference between a successful or unsuccessful scam attempt.
Lack of Proper Research
Hand-in-hand with the three aspects above is the lack of research executed on behalf of potential victims. After all, people have been throwing money at any project which seems too good to be true. This was rather apparent during the ICO hype stage, and it seems the IEO industry will see a very similar trend. Very few projects will ever develop a worthwhile infrastructure, regardless of how much money the developers are given.
Considering how 90% of the ICO’s to date are either out of funds, exit scammed, or still do not have a working infrastructure, one would expect investors to have learned a valuable lesson. Given the current popularity of cryptocurrency scams, it is clear that is far from the case. One can only hope things will improve accordingly, but so far, it seems unlikely that any real change will occur.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.