TL;DR
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Recently, executives at Blockfence found a project that claimed to be Blockfence, but was not.
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Scammers have started to launch tokens under the names of legitimate companies, but in reality there is no association and the project is just a straight up pump n’ dump scheme.
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If you simply can’t resist buying into speculative projects…Allocate a tiny percentage of your investments to ‘degen plays’ (aka investments you assume are going to zero) and get it out of your system.
Full Story
Okay, let’s address an elephant in the room.
Yesterday we told you crypto crimes were down 29% (yay!).
But! Today we are confirming that crime is still an issue (booo!).
And we come bearing new insights from reliable sources:
Recently, executives at Blockfence found a project that claimed to be Blockfence, but was not.
What’s even crazier is that the Blockfence team discovered this scam operation was doing a similar thing to hundreds of other companies!
The scam works like this:
They launch tokens under the names of legitimate companies, but in reality there is no association and the project is just a straight up pump n’ dump scheme.
The scammers start by putting a ton of initial investment into a project to make it appear real, then start selling once the price starts to rise (leaving newer investors holding a cratering coin/token).
And they keep doing it over and over again.
So, what’s the solve?
On an industry-wide scale…
We need regulation that is clear, fair, and doesn’t “throw the baby (great projects) out with the bathwater (scam projects).”
(Unfortunately, for now, the SEC is refusing to regulate the industry responsibly).
On an individual level…
Don’t buy coins you haven’t thoroughly researched.
Or, if you simply can’t resist…
Allocate a tiny percentage of your investments to ‘degen plays’ (aka investments you assume are going to zero) and get it out of your system.
