Beware of these Cryptocurrency fraud schemes

By Sony T
5 Min Read
Beware of these Cryptocurrency fraud schemes 1

Ranging from the sector of young and amateur investors to the seasoned professionals in this field, crypto frauds have harmed several people worldwide. This is happening because of the increasing interest in the world of cryptocurrency and the consideration that it can be a new financial Avenue. Bitcoin started to return about 91% ever since it was launched in the market. Best Expert Review for Crypto Bot Trading, a mere meme coin, has also produced 3785% since it got popular in 2021.


Several schemes have promised investors that the returns will be very high. Most investors will tend to get into the matter quickly and win back as much profit as possible. However, this can be very harmful as the coins are very volatile. Even other than this, there will be a use case before you make your investment in this field. The Squid Game crypto is an example of such hurried and disturbing schemes in the crypto world.

Let us check out some of the areas that might be scary for first-time investors and lead them to a world of scams.

Cloned tokens: 

  • About 10,000 crypto coins have been listed in the global exchange. The market has consistently considered the top ten coins to be the giant holders of the market capital.
  • People tend to invest in the smaller coins after they have failed to achieve profit in the more significant currencies.
  • Scammers often make sure that coins are designed so that the investor will not understand whether it is an actual coin or a false token.
  • For example, you can consider the phenomenon of Bitcoin. The scammers might design something quite similar to Bitcoin. This will urge investors to move towards this coin, but it will not have a valid ground in the market.
  • Filtration of any kind of coin in the level of exchange might be considered a scam as well.
  • The exchange platforms are designed in such a manner that the limited set of currencies which have been created till now are listed within the network.
  • The filtering process begins at the listing stage as well.
  • Two hundred coins have been listed on the global exchanges. The platforms can provide exchange values only when the projects are reliable.

  • Social media groups: 
  • Several social media groups have started people into the world of crypto while saying that they will double the value of the coins.
  • These groups are the ones to beware of. Social media channels often keep their eye on potential investors.
  • They offer twice the number of coins already bought or invested. Cryptos might be sent to the scam wallets in hopes of getting the values doubled.
  • However, they are lost in the blockchain network forever. This is the most prevailing kind of scam in the blockchain market.

MLM schemes: 

  • 15 to 25% of the return value is offered by the investors when they have been in the world of cryptocurrency.
  • The scammers often ask the investors to pay a certain amount of capital and add members to their network to increase returns.
  • The person is usually paid a commission by the business done through the other members. These schemes are not possible on ethical or legal grounds as returns are not entirely possible.
  • Making money through pyramid schemes seems to be the forte of these scammers.

The Reserve Bank of India (RBI) has always kept a very cautious note about how Cryptocurrencies might fall in the market. Before you have invested your money in any of the projects, you have to think about the strategy with due diligence.


The popularity achieved by Cryptocurrency at the moment is something that cannot be imagined by anyone else. There are huge returns for the investors in most of the areas. The lawless and unregulated world of crypto has some ethical dilemmas which cannot be handled unless the previous victims come forward. There are high chances that a new investor will fall into the trap of schemes and fraud unless they are cautious. Eighty million USD was lost in the USA in 2021 due to crypto fraud. It is instead a time to be careful and make sure that you have not fallen a victim to any of the cases which have been mentioned above.

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By Sony T
Sony is a passionate bloggers writes on Futuristic technologies ...
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