S4B Crypto Contest - Season 21
Greetings everyone how are you all doing today.
How do pump-and-dump schemes work in crypto markets?
Pump and dump in Cryptocurrency market refers to where an individual or group post information that is false or contain misinformations about a low trading volume virtual currency so that people can invest in it. The manipulators bring their stocks to the market after having raised the price, then selling them at the higher prices while leaving the others at the lower price hence making the other investors incur losses.
This manipulation is usually done using social media hype, false endorsement and the buying technique. This is both unlawful and immoral as its main focus targets emotional appeal, specifically, Greed of the beginners in the trading business.
What is a rug pull in crypto.
In the cryptocurrency line, rug pull refers to a situation where the individuals behind a specific project have taken the investors’ money and opted to abandon the project with investors not experiencing any returns. Probably the most important measure investors should undertake to make sure that they are not victims of the rug pull scam is to conduct research on the team behind the project, review the white paper of the project, check for audit reports of the project, examine token distribution, and the road-map of the project among others.
Again, the enhancement of the risks of rug pulls, one can invest in better-known projects with clear teams, active communities and smart contracts audited. One way of avoiding falling prey to the bad guys in the crypto world is by keeping abreast with the latest news, conducting research and being extra careful when investing.
How do scammers use social media to promote fake crypto projects.
Scammers attach links to their fake crypto projects through social media accounts through exciting posts with bonus earning and VIP Investment Calls and they also apply fake endorsements which they endorse their products by using celebrities and influential personalities and this is done by posting Ads that lead to fake profiles that readily convince users into investing in fake business.
In so doing, they may also posit fake websites and whitepapers merely to convince investors. Through the use of social media platforms, fraudsters are able to reach a large number of people within a short time and make them fall trap to scams leading to loss of both money and reputation.
Have you ever been scammed in crypto?
No I have not been scammed in cryptocurrency since I entered the crypto world because I always ensure that I am cautious especially when investing and engaging in any business. There are important lessons that I have learnt which include performing a lot of research before one gets involved in any project or platform, ensuring one works with reliable sources only, and the last but not the least, I have never disclose my private keys or any personal information to anyone it's always save.
This means it is pertinent to educate myself further and be more cautious with any investment that comes my way or use in crypto. In particular, I would like to note that my experience with cryptocurrency is generally positive, and I try to deepen my knowledge not to become a victim of a fraudster.
Thanks for reading my post I'm inviting @m-fdo, @joymm and @ability20 to participate.
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@waqarahmadshah