Verified Twitter accounts can often help demonstrate the legitimacy of this project. If you do an Internet search and don't find a clear home page, a “technical document” or an obvious symbolic purpose, it's probably a scam. Despite this, cryptocurrencies are still volatile, and even large companies, such as Bitcoin, experience sharp spikes in value over short periods of time. For that reason, it's increasingly common for scammers to invent fake founders and biographies for their projects.
CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and blockchain startups. For the cryptocurrency investor looking to make the most of the multitude of new investment opportunities and, at the same time, stay safe from fraudulent ICOs and unreliable coins and tokens, the prospect can be overwhelming. By the way, the cybersecurity company CloudSEK has revealed in a recent study how a fake stock scam has deceived Indian investors out of more than 1 billion rupees. A new account with few followers that seems to be selling only crypto projects in shillings is unlikely to be trustworthy. The growing popularity of cryptocurrencies has led to an increase in the number of cryptocurrency investors, as well as authentic and fake cryptocurrency exchanges.
Scammers can easily create a crypto token and have it listed on a decentralized exchange (DEX) without going through any type of code auditing or other type of background check. Pay attention when looking for new investment opportunities in ICOs and cryptocurrencies. The cryptocurrency and ICO spaces offer enormous opportunities for investors who have done their homework and are able to make sound investment decisions. An exclusive social media scam comes from YouTube, where people set up fake live streams to trick viewers into taking their cryptocurrency away.
Blockchain and cryptocurrency technology is developing at a breakneck pace, and even experienced investors can find it difficult to keep up with the terminology. Learn more about Consensus 2024, CoinDesk's oldest and most influential event that brings together all the players in cryptocurrency, blockchain, and the web. These links can be malicious phishing attempts or simply instruct you to send your cryptocurrencies for the “expert” to invest. Sandeep Shukla, professor of Computer Science and Engineering at IIT-Kanpur and co-director of the National Blockchain Project, advises that investors never choose an exchange based on social media ads or direct messages.
Crypto industry experts have also said that if any cryptocurrency platform offers very high returns, that's the first red flag.