Fake Crypto Projects:
Fake crypto projects usually come with sleek websites. They also offer white papers and fake endorsements from celebrities or influencers.
- Promises of extremely high returns in a short period.
- Fabricated roadmaps and white papers.
- Fake team bios and stock photos.
- Paid reviews and shilled posts
Did you know the BitConnect scandal, where investors were promised massive returns through a “trading bot?” The token skyrocketed before collapsing, wiping out billions in investor funds.
Phishing Websites and Fake Exchanges
In this fraud type, the scammers first create websites that look identical to existing platforms. The goal is to deceive users into entering their private keys, wallet credentials, or exchanging login information.
- Fake URLs
- Email campaigns
- Fake mobile apps
- Unofficial marketplaces
3. Rug Pulls and Pump-and-Dump Schemes
First, scammers launch a token. Secondly, pump its price through aggressive marketing. After these steps, pulling the rug by selling off all holdings causes the price to crash.
- Anonymous development team
- No real roadmap or utility
- Locked liquidity is absent.
- Sudden price spikes followed by crashes
Did you know about the Squid Game Token fraud? The token surged to thousands of dollars before crashing to nearly zero. No one was able to sell a single token.
Ponzi and Pyramid Schemes Disguised as Crypto Platforms
These frauds always insists investors to recruit more investors and earn more income.
- They always offer rapid goods returns.
- Mega referral bonuses
- But do not have actual product or service
Illegal Fundraising and Unregistered ICOs
These often operate in gray zones, promising investors massive returns with no investor protections.
- No legal accountability
- No investor recourse if the platform vanishes
- Often based in obscure jurisdictions
Social Media and Influencer Scams
Social media platforms are breeding grounds for crypto scams.
- “Send 1 ETH, receive 2 ETH back” fake giveaways
- Fake Elon Musk or Binance CEO accounts hosting giveaways
- Shill campaigns for meme coins with no backing
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