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Before you start trading Coins, try crypto scams

Before you start trading Coins, try crypto scams

Late last year the scene was filled with big fanfare and ended up spraying a lot of red ink.

After the anonymous founders drank out, Squid began trading at a time of just one penny. It jumped to $2,856.

After the crash, more than 40,000 people still held the token, according to analysts. Squid's developers made out with $3.8 million.

The Squid scam has been described as a rug pull, where developers of a cryptocurrency project typically a new token abandon it unexpectedly, taking users money with them.

Mark Cuban, a self-made billionaire and a Shark Tank star, made a Bitcoin payment in June 2021, which lost all its value in one day.

Rug pulls were a big factor in 2021, accounting for 37% of all cryptocurrency scam income in 2021, compared to 1% in 2020, according to the data firm.

Kim Kardashian is accused of promoting an allegation of scamber.

Many social media influencers, celebrities, and even executives have been paid to pump tokens or projects on their devices, according to experts. But that doesnt mean that its valuable or a good investment. Feeding into social media hype will often result in money lost.

Investors have sued Kim Kardashian, boxer Floyd Mayweather, and basketball player Paul Pierce earlier this week, accused them of conspiring with EthereumMax to tamper them.

EthereumMax operated a "pump and dump" scheme, where misleading marketing is used to inflate the price of an asset then sold to unwitting investors at a profit.

It is never a good idea to make an investment decision, according to the SEC in 2017.

TheStreet Recommands

According to Chainalysis, Cryptocurrency-based crime will reach a new all-time high in 2021, with illicit addresses receiving $14 billion over the course of the year, up from $7.8 billion in 2020.

Investments in cryptocurrencies and digital assets are the most serious investor threat "by far," according to the North American Securities Administrators Association (NASAA.

Crypto investment scams that guaranteed high returns without any risk have been warned by the association.

"If it sounds too good to be true, it probably is," the association said.

Sweepstakes, fake prizes

Another type of ripoff is a scam page, where one might be mistaken for a real philanthropic campaign.

Cameras impersonate Tesla () - Tesla CEO Elon Musk allegedly stole over $2 million last year.

Email phishing attacks are another source of crypto crime, where consumers receive a message from what appears to be a prominent crypto investor and click on an attachment.

And then there are bogus initial coin offerings (ICO) which are believed to have been used by at least 900 people recently.

Chainalysis claims that things on the crypto crime front are getting better in all fairness.

The number of legitimate cryptocurrency transactions increased by far than criminal usage, and the number of transactions carried out by illicit activity has never been reduced.

Before investing in, experts recommend that investors understand the risks of cryptocurrency.

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