Cryptocurrency is a very new financial asset and people need to watch out for these cryptocurrency scams to protect themselves.
Although it’s popularity is great for the crypto-industry as a whole, this does lead to some concern for the early adopters of this financial asset. After all, when popularity hits an asset or trading vehicle before regulation does, scams tend to run rampant.
Cryptocurrency Is No Stranger To Scams
Lately, there has been quite a bit of talk in the financial space about cryptocurrency regulation. At the end of the day, these conversations aren’t just happening for the sake of having them.
The reality is that regulators are getting together in an attempt to protect consumers from scams and fraudulent activities that are happening in the space as we speak. At the moment, there are a few different types of scams running rampant in the cryptocurrency space:
1. Fake Earnings Systems
It would be amazing to be able to push a button and earn money wouldn’t it? The con-artists behind various cryptocurrency related scams take advantage of the feeling you get when you think about passive income. Bitcoin Bob is a great example of this type of scam.
Essentially, users are lured in by promises of massive earnings through a unique system involving cryptocurrency. However, there is no proof that the system exists. Instead, Bitcoin Bob, like many others, prove to have no real product in the long run as the founders of these systems take the money invested and run!
2. Ponzi Schemes
Cryptocurrency has its own version of Ponzi schemes. However, what makes matters worse is the fact that the anonymity offered through the blockchain makes it even more difficult to catch the con artists. A good example of this scam is New Tycoon Plus. New Tycoon Plus lures investors in with promises of massive gains on small investments in cryptocurrency mining equipment. However, with unsustainable returns on investments and no proof of where the money actually goes, New Tycoon Plus is nothing more than a blatant scam.
Finally, cyber theft has become a common occurrence in the cryptocurrency space, and we’re not talking about small quantities either. Every once in a while, we hear reports of hundreds of millions of dollars in cryptocurrency being stolen or simply coming up missing from one exchange or another. Ultimately, the anonymity associated with the blockchain has led to the evolution to a whole new breed of cyber criminal!