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2021 recap: Greatest crypto scams of the 12 months – CNBCTV18

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2021 was a 12 months of highs and lows for the cryptocurrency market with substantial good points and large losses. The cryptocurrency frenzy additionally led to the launch of recent cash and tokens each different day, giving scamsters the chance to lure ignorant traders who spent little time researching these new cryptos attributable to worry of lacking out (FOMO).

A report by blockchain agency, Chainalysis, suggests scammers stole round $7.7 billion from traders by way of varied scams and rug pulls this 12 months. The report mentioned crypto scams rose by over 80 p.c in 2021 as in comparison with 2020. Whereas there have been many run-of-the-mill scams the place scammers used phishing and electronic mail scams, some cons caught the world’s consideration. Here is an inventory of among the greatest crypto scams of 2021.

Greatest crypto scams of 2021

Faze Saga/SaveTheKids

Social media influencers had been among the many extra outstanding proponents of cryptocurrencies in 2021. Many of those influencers used platform and recognition to knowingly or unknowingly promote pump and dump schemes. On this scheme, proponents usually artificially inflate the value of crypto by way of false promoting and relentless promotion to promote their cash and pocket the income whereas traders watch their cash taking place the drain.

One rip-off that utterly embodied this ideology was what occurred with savethekids token. In June, an e-sports group FaZe clan’s members began selling a charity-based cryptocurrency referred to as SaveTheKids. The members of FaZe clan went all weapons blazing for the promotion of this token with official promotional movies and even their picture on the SaveTheKids official web site.

Shortly after the token formally launched, the preliminary traders who held nearly all of the token bought their tokens, and the crypto quickly tanked.

Some sharp-eyed sleuths on the web began noticing a sample the place FaZe clan would promote crypto, and it could tank instantly after launch. After investigations, the FaZe clan suspended a lot of its members.

Squid Coin

Probably the most fashionable tv reveals additionally spawned some of the monumental rug pull scams of 2021. The favored South Korean present, Squid Game, gave rise to an altcoin that had traders salivating. Even legacy media fell for it because the coin went from just a few {dollars} to $3,000 in a matter of some weeks.

However after all, it was one other rug pull. A rug pull is a malicious manoeuvre within the cryptocurrency trade the place crypto builders abandon a mission and escape with the funds they acquired initially.

Though the rip-off was very well-planned, there have been tell-tale indicators of a rip-off from the start. For one, no official creators of the present had been concerned with the cryptocurrency in any capability in any respect.

And the preliminary traders who purchased the coin began complaining that they might not promote the tokens.

Poly Community Hack

A lesser-known identify on the earth of crypto, Poly Community is decentralised finance (DeFi) platform that noticed one of many greatest hacks of the 12 months. A hacker noticed a flaw within the DeFi platform that permit him switch $600 million from the community to his account.

However the excellent news was that the hacker was a ‘white hat hacker’, a hacker who exposes vulnerabilities in a community to assist the platform tighten its safety.

In just a few weeks, the hacker returned the entire sum of cash and even bought rewarded $500,000 by the poly community for exposing the vulnerability.

Afriscrypt Rip-off

Two brothers who ran a foreign money change service agency referred to as Afriscrypt in South Africa stole bitcoins value billions from their traders and vanished.

In April, the Cajee brothers initially claimed that their agency was hacked, and the cash was stolen from their consumer’s accounts. However the story didn’t stand beneath scrutiny, and ultimately, traders realised that the brothers had been mendacity.

The victims’ attorneys estimated that about $3.6 billion was stolen in bitcoins. The whereabouts of the brothers are nonetheless unknown.

Stolen Bored Ape NFTs

Calvin Beccera, the proprietor of the well-known ‘Bored Ape Yacht Membership’ non-fungible tokens (NFTs), a collection of digitally created artwork portraying apes, was scammed into giving the ape NFTs.

The scammer tricked Beccera beneath the guise of offering technical help for his NFTs. The scammer stole three ape NFTs, and it’s estimated that every of them was value $225,000. However Beccera claimed the three apes had been collectively value $1 million.

 

(Edited by : Yashi Gupta)

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