What are crypto scams and vital information to avoid falling into these scam projects
Welcome everyone, we will talk about a topic that will interest all the people who are entering the world of cryptocurrencies, and they are crypto scams, although we know that the world of blockchain is very safe, this is not safe from the malice that cryptocurrencies have. people in the world and that is where most of the scams in the Crypyo world lie, since the only way to be scammed in this world is to be deceived by unscrupulous people who use the little knowledge they have to use this cunning to take away your money to people, without further ado let's start.
What are crypto scams?
Cryptographic scams are the acts carried out by cyber criminals who use some system vulnerability to obtain their own benefits, and as I mentioned before, most of these vulnerabilities are human, since most of these scams are carried out because a significant number of people are deceived and by trusting these unscrupulous people they decide to invest a large sum of money for a benefit that never arrives.
The most common method to observe in the crypto world is when they launch an ICO, since this is the best moment that investors find before a totally new project that offers news, and this is where the trap occurs, since these projects are almost always anonymous, a serious project that is respected, you will always be able to observe who is from the development team, and in these ICO scams it is possible to discover why they are absent from their website.
Other scams of this type have gone further, since they raise hundreds of thousands of dollars for the launch of their project and overnight they disappear with the money, that is why there are websites with high recognition and prestige that are dedicated to validating the projects so that people are not deceived with this type of action.
Another type of scam is pyramid schemes, and if the crypto world also exists pyramids where the well-known Ponzi system is executed where you invest money and never get it back, as always happens in this type of scam.
Another very common scam is web miners, where a website offers you a super fast mining service and these in many cases do not have the physical equipment and show incredible profits on their website, although it seems impossible many people invest in these coins, since They do not know the real operation of mining, one of the particularities that these scam websites have is that the amount to be withdrawn is almost impossible to achieve, apart from the fact that it asks you to refer more people to achieve the initial withdrawal.
Research any cryptocurrency scams. (Attach some references to the news related to that fraudulent crypto project)
THE COINVIP case.
This is a crypto Ponzi where they offer you to earn thousands of dollars by investing in their currency, the ad on their website shows several guys in a pool and then they start receiving a lot of money, without even lifting a finger, this system is the same system The usual Ponzi but the difference is that they use a cryptocurrency called SCAM.
This SCAM is used to collect money from the unwary, where you have to invest a minimum of 6 dollars and from there and a series of referrals that you must go looking for your monthly income can be up to 60,000 thousand dollars, in COINVIP currency.
The incredible thing is that it is a registered company, in the name of "AGENTES GOLD" and it is in charge of distributing both the coins and raising the funds, it is openly known that it is a ponzi system for which it is penalized in Colombia.
One of the main suspicions that this scam raises is that its website is made in a rudimentary way as if it were rookies who designed it, with ugly texts in every corner and it looks like a cloned script.
In it, if you invest at least 6 dollars in 90 days, it promises a profit of 8,000 dollars, and if you bring referrals, your profits are multiplied.
One of the things that draws a lot of attention is that being a company registered in Colombia, it meets all the legal requirements for its operation, but the system that they promote, which is the PONZI system, is penalized in the Republic of Colombia.
The impressive thing of all is that there are already complaints of fraud and the company continues to work normally, something totally incredible, although currently the end of the story is operating, we all know it, and there are still people who fall for this type of scam.
In 2020 it was listed as the 5 most notorious crypto scams in Colombia.
https://es.beincrypto.com/recopilacion-top-5-estafas-criptomonedas-colombia-2020/
https://es.beincrypto.com/estafas-criptomonedas-colombia-activas-2020/
https://criptomonedaseico.com/analisis/coinvip-un-criptoponzi-de-colombia-para-el-mundo/
Although it is an active project, it is still a pyramid scheme, which is active today and this is what is most surprising.
To what extent have crypto scams affected the crypto space?
This type of scam affects the entire ecosystem that has been built, because it makes people lose security in the world of cryptocurrencies, this more than anything happens because the vast majority of people in the world have almost zero knowledge of the blockchain and the benefits it brings.
The decentralized economies are so revolutionary and innovative, that few people know that there are other ways to generate income that are not typical, previously you could not generate income if you did not have a stable job where you only receive a 15th and last salary of each month, with decentralized finance this changed, as you can get rewards on a daily basis.
So what this type of scam does is give insecurity to investors who are experimenting and testing digital money such as BTC and other currencies, these scams disappoint most of the people who fall for it.
The solution to this is to educate people, so that they do not fall into this type of dirty game, so the reputation of cryptocurrencies will be cleaner, since those of us who are immersed in this world know the potential that these free systems have.
Currently this type of action has greatly affected the crypto world, since international institutions have had to create regulations and verification systems as well as audits to generate more confidence in this type of asset.
It is common to see projects that come to light and that before launching their ICO the project is reviewed by companies that carry out an extensive audit, this delays these projects a lot but generates more security, this has had to be implemented thanks to the numerous cases of scam that has come to light public.
The scope of these scams has been tremendous, to the point that in social networks even newspapers or prestigious websites are seen promoting this type of business, where only the owners are the beneficiaries, as in the case of COINVIP that are blatantly still operating, and most people know that they are scams and nobody does anything, everything seems to be a partnership with a powerful entity that is looking to raise funds without a solid project and then disappear as always happens.
Will regulations in Crypto add value to the Crypto space?
I see this scenario as uncertain, since as crypto is taking more and more space in world finance, new regulations come out every day, this causes two things, that the price of an asset is affected in the first instance, achieving lose several points of value, and that all these projects, by submitting to these regulations, increase people's confidence and therefore the use of cryptocurrencies becomes widespread.
Although it is very soon to give a verdict on what can happen in these two scenarios, the truth is that the more coins or exchangers or defi projects adapt to the regulations, the number of people who will enter this world of cryptocurrencies It will be bigger every day.
This would be without a doubt in the positive case of the matter, since just as these regulations can add more value to the coins in the future, the opposite can also happen, since it may restrict the use of a platform or currency in a certain area, which It would cause this currency or project to have large losses and consequently a loss of value.
It is currently happening with the binance exchanger, although it is not a 100% defi project and it is a centralized exchanger, this is one of the most important worldwide and the amount of regulations and sanctions that it is having lately is making its footprint is lower in these countries that sanction it.
Other regulations that they are having strongly are the BTC miners who have had many to move since in countries where they were consolidated they are now considered to carry out an illicit activity, and this causes the price of the currency to fall in certain periods.
Surely the recovery will be stronger when they find a stable site where they can operate normally, but it is impossible to hide that these sanctions are affecting the price of BTC since when a mining farm stops and there are fewer miners in the pool, the hash level and coding is reduced causing prices to drop.
Of course, not everything is bad since there are countries where they are increasingly accepting the use of cryptocurrencies because they have understood that it is the future of money, as an example we put the case of El Salvador, which was the first country to accept BTC as a local currency .
There are many countries that accept cryptocurrencies and their use is legal in their territory, but these people who use these currencies have to follow a regulatory process and pay taxes in order to comply with the regulatory laws of each country, in my case the example of Venezuela that There is a ministry of cryptocurrencies with a fiscal site in the capital of the country and with its own website where all the requirements and legal data to be able to mine and buy and sell cryptocurrencies are found.
Conclusion
Cryptographic scams are the main cause that people do not trust cryptocurrencies and computer systems very much, most mistrust due to lack of information and ignorance, just as people who fall for this type of scam are people with little knowledge and that once they try to experiment with decentralized finance they have bad luck and fall into these scams, luckily there are already regulations that are giving legality to many projects and this is a way to provide more security since a project audited by a company will be more attractive than a ghost project, of course without forgetting that many of these regulations sometimes cause the share price of a currency to fall and in other things a well-audited project can increase the value of its assets since it generates more security and stability in people .