Major Cryptocurrency Scams of the Year [A Newbie Investor’s Guide]

Whether you’ve only recently been aware of the cryptocurrency craze or have been involved in it for some time, you’ve almost certainly heard about its risks. It’s a reality that the cryptocurrency market is quite volatile, which means that making consistent earnings isn’t a given while trading. However, this isn’t the only danger to people’s careers since many accounts are made explicitly to hack or defraud investors and traders.

Cryptocurrency, especially for newbies, can be tough to understand. Suppose you’re interested in learning how to trade or invest in digital currencies. In that case, you need to stay up to date on the latest news on cryptocurrencies, especially crypto scams perpetrated by criminals, to avoid being a victim. The Crypto Genius review was put together by virtual currency teams of professionals at BiteMyCoin that gathered all the essential data. The article was written so that you may learn about  the platform’s usage and its legitimacy.

Because of the increasing number of examples of fraud and theft in the field, it’s not surprising if you’ve faced or will encounter these situations at some point during your tour if you’re not yet familiar with the market’s frauds and want to learn more. We’ve selected three of the most common cryptocurrency scams to keep you on the edge of your seat and make you reconsider your actions.

SaveTheKids

Influencer marketing of cryptocurrency was one of the most rewarding techniques for influencers in 2021. You undoubtedly already know that just because a well-known figure in the area recommends a crypto coin or platform doesn’t imply it’s not a scam. The massive amounts of cryptocurrency that some of your favourite Instagram or TikTok celebrities were advocating turned out to be pump and dump schemes, with the SaveTheKids token was one of the more memorable examples.

Except that all the things were all a set-up for a carpet pull. This occurs when a virtual currency is created to steal funds from investors. The SaveTheKids token failed immediately after its formal introduction due to a significant sell-off by the first investors who held a majority of the coins. SaveTheKids lost all value as soon as that happened publicly.

Perhaps it might have ended there, but it was revealed to be yet another option for a hoax. However, some have observed that FaZe Kay, particularly, advocates for cryptocurrencies that all lead to the same place.

Except that the whole incident was a set-up. According to Matt Binder’s Twitter account, the coders behind the crypto vanished on June 17. However, the website was changed around June 24-26 to remove the photographs of the FaZe clan members. Several YouTubers have also noticed that Faze Clan promotes crypto that all end in the same way, leading to speculation that the group is advertising the scam and is also involved in its production.

Squid token

What do you get if you convert the year’s biggest Netflix success into a cryptocurrency? One of the year’s most well-publicised ruses! That’s right, one of 2021’s most popular television shows also spawned one of the year’s biggest con games. A popular South Korean series, Squid Game spawned an altcoin that had investors salivating. Since it surged from a few dollars to nearly $3,000 in just a few weeks, even media sources like Business Insider, Forbes, and CNBC have fallen head over heels for this coin.

However, there were red flags from the start: none of the show’s creators was involved with the crypto, and the coin’s developers had no rights to use the Squid Game name as a base for the crypto. Squid token investors protested that they couldn’t sell their tokens, which was all part of the designers’ intention. The cryptocurrency’s creators included an anti-sell-off feature, which prevents some users from selling their coins. Later, the Squid Game coin met the same fate as some altcoins: it was nothing more than a pump and dump scheme that benefitted the inventors while leaving investors with massive losses.

Poly Network hack

The Poly Network Hack would have been the theft of the century if the hacker had been like any other cryptocurrency hacker. This is why:

A hacker discovered a hole in the Poly Network system in the summer of 2021, allowing them to move more than $600 million to their individual accounts. In most hacking instances, the money and the hacker would have already vanished, never being seen or heard again. However, the hacker contacted Poly Network in the following weeks and stated that they planned to return the funds.

Poly Network went along with it and even dubbed the hacker “Mr White Hat,” a name that refers to an ethical hacker who takes money to disclose a system’s security fault so that it may be rectified before a genuine wicked hacker arrives. It all worked out for both the crypto platform and the hacker. The platform received the vast majority of the cryptocurrency funds.

Furthermore, the hacker was spared any possible consequences for carrying off the world’s largest crypto robbery, and he even received a $500,000 reward from Poly Network for returning the assets.

Final Thoughts

Scammers and fraudsters took advantage of slipping onto the cryptocurrency field and firing their bullets as the digital currency improved. Since the public introduction of Bitcoin, there have been innumerable incidents of cryptocurrency scams, and the three events listed above are just a few of the most notable. To minimise or reduce the odds of getting included on the list, it’s always a good idea to perform a lot of research on a crypto platform or currency before putting even a modest amount of money in it.