Hey guys, welcome back to Zilliqa Zebra. In this video, learn about the major types of cryptocurrency scams and how you can protect yourself from them.
As always, don't forget to like and subscribe to Zilliqa Zebra for all things related to Zilliqa and cryptocurrency.
Cryptocurrency scams have hit an all-time high in 2021, with US$432 million laundered by the end of April this year. 56% of this was related to DeFi.
Scam #1 - NFT Scams
Scam #1 are NFT scams. Because NFT system doesn't require people to actually own the copyright to something to mint it, it's a market ripe for fraud. Be extra careful of Replica NFT stores, fake stores, counterfeit NFTs or even artist impersonation. To check fraudulent sites, go to checkphish.ai to verify the authenticity of the site.
Scam #2 - DeFi Scams
Scam #2 is DeFi put off the Stroke. Note that some DeFi platforms are scams which lure investors into lending money by promising heavy profit but pocket the money. Most often investors will not be able to recover the lost amount. A recent example is DeFi100 built on Binance Smart Chain which took away $32 million from almost 200,000 investors.
Scam #3 - Pump and Dump of Altcoins
Scam #3 is the pump and dump of Altcoins. As altcoins are cheap, they follow the pump and dump characteristics of penny stocks, through misleading, false and exaggerated recommendations. Hence, always watch out for what you read, and do a thorough research and not be lured by greed.
Scam #4 - Viruses and Malware
Scam #4 are scams caused by viruses and malware, which is more common than what you expect. The best way to protect against this is to ensure you get a robust two-factor authentication for your crypto-wallets. A little effort goes a long way for this, and I highly recommend that you do this immediately.
Scam #5 - Imposter Websites
Scam #5 are imposter websites. There's a surprising number of websites that have been set up to resemble original websites, and supported by an intricate web of social media channels such as telegram. Again, use the fraud site check that I mentioned earlier as a safe measure.
Remember, your hard-earned money is meant for you to generate more income. Don't lose it easily to FOMO or greed.
I hope you've found this short explainer video useful. Bye now from Zilliqa Zebra!
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