Ponzi Scheme

As the popularity of cryptocurrencies and blockchain technology grows, so does the potential for scams and fraud. The NFT Opportunity and Its Appeal to Scammers Blockchain, a decentralized ledger tracking all transactions involving an item, is where NFTs reside. NFTs can represent anything from art to in-game items. These assets have become increasingly popular in recent months as their prices have soared. However, as with any new and burgeoning market, the NFT space is rife with fraudsters looking for unsuspecting…

Devotees of the reactionary conspiracy theorist group, QAnon, have fallen victim to multiple crypto scams by influencers. According to reports, influencers PatriotQakes and Whiplash347 scammed thousands of investors by promoting fake cryptos on their Telegram channels. Logically, a tech fact-finding company, unearthed a massive fraudulent scheme run by QAnon thought leaders PatriotQakes and their partner. The duo had built Telegram communities of about 300,000 followers combined, named Whiplash347 and Quantum Stellar Initiative (QSI.) In these groups, the fraudsters allegedly promoted…

The Philippines' Securities and Exchange Commission (SEC) has declared the top Ethereum DApp, Forsage, which accounts for 25 percent of the activity on Ethereum network as a possible Ponzi scheme. As a major source of activity on the Ethereum network recently, Dune Analytics shows that Forsage smart contract consumed 12.78 percent of Ethereum’s gas within the previous 24 hours. Forsage, which is behind the increase in ETH transaction fees, claims itself as a fully decentralized matrix marketing project, as well as the most thought-out…

The word scam is often applied to dubious startups and Initial Coin Offerings (ICOs)/Initial Exchange Offering (IEOs) within the cryptocurrency community. When the project lacks practical usefulness and the business idea behind it is suspicious, such projects are often referred to as scams. Compared with other ways of stealing money, the main feature of a Bitcoin scam is that it usually takes advantage of people's trust and negligence. Currently, the cryptocurrency market is not regulated enough to protect people from…