TL; DR
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Recently, executives at Blockfence found a project that claimed to be Blockfence, but wasn’t.
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Scammers have started launching tokens under the names of legitimate companies, but in reality there is no connection and the project is just a straight up pump-n-dump scheme.
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If you just can’t resist investing in speculative projects…Allocate a small percentage of your investments to “degen plays” (aka investments that you assume will be zero) and remove it from your system.
Full story
Okay, let’s address the elephant in the room.
Yesterday we told you that crypto crimes are down 29% (Yes Yes!).
But! Today we confirm that crime is still a problem (boo!).
And we come up with new insights from reliable sources:
Recently, executives at Blockfence found a project that claimed to be Blockfence, but wasn’t.
What’s even crazier is that the Blockfence team discovered that this scam operation was doing something similar hundreds from other companies!
The scam works as follows:
They launch tokens under the names of legitimate companies, but in reality there is no connection and the project is just a straight up pump-n-dump scheme.
The scammers start with a lot of initial investment in a project to make it seem real, and then start selling once the price starts to rise (leaving newer investors with a crater coin/token).
And they keep doing it again and again.
So, what’s the solution?
On an industry-wide scale…
We need regulations that are clear and fair and do not ‘throw the baby (big projects) out with the bathwater (scam projects)’.
(Unfortunately, the SEC refuses to responsibly regulate the industry for now).
On an individual level…
Don’t buy coins that you haven’t thoroughly researched.
Or, if you just can’t resist…
Allocate a small percentage of your investments to “degen plays” (aka investments that you assume will be zero) and remove it from your system.