Steemit Crypto Academy |Season 3 week 6 - Crypto Scams and how to avoid them by @head1

---

source

What are Crypto scams?

Crypto Scams are perfectly crafted schemes which are intended to steal from crypto holders and buying. These scammers may create duplicate websites, host a fake airdrops, create fake crypto wallets or exchange all with the aim of diverting sales or to steal private keys or passwords to wallets from their victims. Just like any scam, crypto scammers may feed on your greed or vulnerability to get access to your cryptocurrencies.

source

This 2019 new from investopedia indicates that 9 million usd is lost each day to crypto scams. This is because cryptocurrency is not regulated and that the decentralized nature almost makes it difficult for scammers or spammers to be tracked. Another reason is that because crypto currencies are becoming more popular, frauders are taken advantages of the loops holes to steal from people through hacking, spamming, fake ICO, pump and dump schemes, and many other means.

---

Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project)

---

source

Johann Steynberg, led Mirror Trading International(MTI) posed as a crypto investment company, which promised 10% interest on crypto investment and a referral bonus when you refer individuals to the platform. After, searching online and noting the zip codes did not indicate any MTI officers, it became clear to me that MTI is just another ponzi scheme when someone wanted to register me to the company in early 2020. As it stands presently about 280, 000 individuls have been affected when the owner vanish december 2020 with about 17000 worth of BTC days before the company will be declared illegal.

MTI is believe to be a multi national crypto scam and now the asserts of the MTI have been liquidated by a South African Court.

source
Some some it is a good news since some 8000 BTC which amount to $280 million have been traced and retrieved from MTI but there is also another side which is saying investor should not build hope in that claims but i hope they are finally able to recover everything is they are claiming.

This scam is one that has put MTI in the top for top 2020 crypto scam by Chainalysis.

---

source

Talk of the two brother Ameer Cajee and Raees Cajee who are the founders of Africrypt in 2019 in South Africa which is currently in shambles. Before this it started as an investment platform which promised high returns at the end of the day. The platforms website has since gone dark following the supposed hack claims and 69,000BTC which at the time translated to about $3.6 million belonging to investors is believed to have been lost to hack attacked by the brothers, and adding more insult to injury, the brothers asked the victims to keep their cool and not to make a case to the authorities'.

Investigations proved that the coins were sent using the mixer options to a different wallet. Brandon Topham, the chief of regulators in SA say for now nothing can be done about this case since Crypto is not legalized in South Africa.

---

source

Promises of crypto doubling by scammers using verified accounts on youtube and twitter they have hacked before and during Elon Musk SNL show on 8th May, 2021, has left many broke. One woman lost dogecoin worth $12000 which is her life savings. With about $5 Million worth of dogecoin and others huge sums stolen in BTC, ETH and other coins within a few clicks of these victims. Now, many are praying for some mercies to get their monies back.

Participants were lured they could get 500,000,000 dogecoins by visiting a website if they click on a link during the livestream.

---

To what extent have Crypto scams affected the Crypto space?

Restrictions
Because of scam which has left many crippled has left law makers to take drastic measure to restrict it use in some countries. We are all witnesses of this years China's crackdown on crypto trading and how that to some extent, he has left the BTC and other crypto in bearish positions for some time until the recent rise.

Uncertainties
Due to this scams, several people are left to think that everyting about crypto is in one way or the other not safe to venture into. $3.6 billion lost to the South African brothers scheme and the state is still considering what to do about it and now the brothers can not be found.

Impact on Market
Some people also fearfully redraw their assets when news of such new start circulating before of fear and this can accept the trend and prices of crypto for sometime.

---

Will regulations in Crypto add value to the Crypto space?

There is enough evidence to prove that whenever regulators have tried to regulate cryptocurrency, there is a bearish season. This happened in 2017 when South Korea made a move and in 2019 when china tried to regulate crypto. It is true that regulation on crypto will make it more attractive to investor and stable but it will also will also stripe cryptocurrencies off it purpose and beauty of staying free from state or central authority control with regards to how far they would want to stretch.

I am sure cryptocurrencies are just doing great and it is growing by day and believe the high volatilities makes it all wonderful but regulations will make more people feel at peace with their investment and it will be widely accepted in all countries but if you weigh the good side of regulation against it negative impact, I think regulating crypto will stabilize the crypto currencies and check ponzi assets.

In conclusion

This has certainly been a great lesson and I really enjoyed reading through the various news which inturn has made me more aware of my surrounding to do due diligence before joining or sending my coins to any one. Thank you professor @yohan2on