New Scams are coming up every single day and we must say that cryptos are by far the most interesting asset to invest your money in. In spite of a few initial turbulences, cryptos have been rising steadily across all sectors of the financial world with newer cryptos being launched every now or then, some being fake and some being real.
The most common among them, being the BitConnect Scam, arguably the biggest crypto fraud of all time. The company entered the crypto market in 2016, December to be exact and at that very particular time made an Initial Coin Offering where they were extremely successful and become the best performing currency in late 2017. At one particular time, BitConnect had a market value close to $2.6 billion with each coin being valued close to $400.
Despite it being so successful, financial experts argued that it might be one of the biggest Ponzi Schemes of all time and that exactly happened. By late December 2018, BitConnect managed to delist itself from all major crypto exchanges across the world where it was supposed to be there. There was absolutely no trace of any kind of persons associated with the firm and soon everything was lost. They say that people have been still trying to recover the details of the actual persons associated with BitConnect but have failed to do so.
Such crypto scams are pretty common nowadays. They spend a lot on marketing by hiring celebrities and managers to promote it as much as they can. Then they manage to gather a lump sum by duping investors. After that, they run away with the money. State state of affairs, isn’t it?
In order to protect yourself in any kind of crypto scam, it is highly recommended to check the white paper of the Crypto. White paper is a document that is presented to the public before an Initial Coin Offering is done. They contain all valid information about the crypto. If something seems out of the blue and there is something that seems to be fishy, then it is highly suggested to not invest in that crypto. This will save you a lot of time and patience.
Till then, let’s hope that the financial authorities devise out a great plan to eradicate all kinds of financial frauds in the near future and no one loses their money due to such scams.