Steemit Crypto Academy |Season 3 week 6 - Crypto Scams and how to avoid them

Cryptocurrency is the only system that has asserted itself in the last few years. Cryptocurrencies have proven to be very useful to people. As you know, The traditional financial system has a limited man to a great extent and has many disadvantages. Cryptocurrency will gradually replace traditional finance. There are still some issues in the cryptocurrency system that need to be improved, in cryptocurrency, for example, Scams are very common from day one. Fraud will be rare because investors and big companies are aware of it. If we talk about scams, it is not possible to end them in this system

in cryptocurrency ecosystems, Investors get fraud from scammers in various ways. We call this process cryptocurrency fraud. Fraudsters try to take advantage of cryptocurrency features, as you know cryptocurrency is based on a decentralized structure, Which is why fraudsters find it easier to commit fraud. That is why there is a need for solid evidence to catch fraudsters, which is very difficult to find in this system. The cryptocurrency inflation rate is much higher than in previous years, according to a survey conducted in 2021. Some examples here.

• Fake Applications: If we look, the world of cryptocurrencies has seen more fake applications than in previous years. Fraudsters have created counterfeit cryptocurrency applications such as counterfeit wallets and counterfeit exchanges. Fraudsters have uploaded these applications to the Google Play Store. Some people download these applications without confirmation And they put their money in it And then they don't get their money back forever.

• Email Scam: In the world of cryptocurrency, there has been a significant increase in email scams. Scammers do this very easily. Fraudsters use email marketing to deceive and collect emails from people connected to cryptocurrencies. And then people's passwords are hacked by sending fake emails. As a result, many people lose their wallets

• Social media scams:This is a deception that fraudsters do very easily. Counterfeiters hack into social media accounts of celebrities and then post from these accounts in favor of a certain type of counterfeit currency. This type of post attracts the attention of investors and then investors invest in this currency. Investment, which in turn proves to be very detrimental to investors.

One Coin Scam

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4.4 billion dollars that's a lot of money especially if we're talking about a Ponzi scheme. this one seemed especially fitting that's because today I have to share a story about one of the biggest cryptocurrency scammers in history going by the name of Ruja Ignatova.

she convinced the whole world that her cryptocurrency one coin would be the next big thing however it turned out that once all was said and done the entire thing was a sham and defrauded investors of over 3 billion dollars

Who is Ruja Ignatova

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Ruja Ignatova was born on May 30th, 1980 in Sofia Bulgaria and after immigrating to Germany at the age of 10 she would eventually go on to earn a Ph.D. in European private law at the University of Constance as a very charismatic and intellectual person.

she was able to easily win over people's trust which is perhaps what made her skilled at parting people with their hard-earned cash in fact as a result of her charisma. she was able to begin a career as both a company owner and a con woman that's because after serving a 14-month suspended sentence for fraud in 2012.

How its working

MLM Recruits Ruja would also specifically recruit experienced multi-level marketers. We’ll go through a super quick rundown on how Multi-level marketing works. Basically, let’s say you’re selling makeup. Whatever makeup you sell, of course, you keep 100% of the profits. But let’s say if you bring in someone else into the business. Then you get a percentage of their sales too. And whoever they bring in, you would get a cut too, and so on. This type of business is actually legal. But if you think about it, it basically operates as a pyramid scheme. Because only a small number of people make a lot of money, and it’s the people at the bottom doing all the work! And Ruja would bring in these types of people on purpose. She recognized that established multi-level marketing sellers with a huge base had the perfect type of people to market her fake coin! This was THE secret of OneCoin's success.

disappearing Ruja Ignatova

In October 2017, she organized a grand event in Portugal. Thousands of people were waiting for Dr. Ruja, but she mysteriously disappeared and never reached this event. To this day, no one knows where she has gone. It turned out that she had gone to Greece two weeks before the event and then nothing was known about it. Dr. Ruja has been missing since October 2017. And millions of dollars have been lost. Dr. Ruja's brother was immediately arrested and he was working with her. He faces up to 94 years in prison. But he does not know that his sister disappear. This is the biggest fraud in history. Agencies around the world have been searching for Dr. Ruja for two and a half years. But nothing is known yet.

you can read more about one coin at this link https://www.bbc.com/news/technology-49826161

To what extent have Crypto scams affected the Crypto space?

We know that the world of cryptocurrencies is badly affected by scams, which makes investors a little nervous. Cryptocurrency is a decentralized system in which it is very difficult to identify fraudsters, which is why fraudsters take advantage of it.

If there is any fraud in the world of cryptocurrency, then the opponents of cryptocurrency exaggerate it, due to which the value of cryptocurrency decreases.

Scams in the cryptocurrency have tarnished his identity. Trustworthy people should be the basis for preventing such incidents. Scams can be countered if the foundation is funded.

Trusted investors invest in cryptocurrencies and if we look at other types of investors, they get distracted by cryptocurrency scams and distance themselves from the world of cryptocurrencies.

If we look, there have been more cases of fraud this year, but the prices of cryptocurrencies have risen sharply. This shows that the confidence of investors has increased in the world of corrupt currency

Will regulations in Crypto add value to the Crypto space?

Regulation plays a very important role in cryptocurrency which can determine the future of cryptocurrencies. It is important to know for what purpose states and organizations will make regulations, Will these regulations benefit consumers, or are they designed to stem the growth of corrupt currencies?.

Rules made in the interest of consumers will be useful if rules and regulations to control corrupt currencies are made, they can be harmful in the future.

If we look at every country or every institution that is operating under certain rules and regulations, we must also follow the rules and regulations in the world of corrupt currency so that we can avoid all kinds of fraud in the corrupt space. ۔
We need to see that if cryptocurrency is revived with big companies, then solid regulations are needed so that traditional financial institutions can work with cryptocurrencies to bring about a modern revolution.

Regard
@aizazghumman