2022 was certainly one of the biggest crypto scam year. Statistics show that the total value of scam was $4.3B; FTX though being an exchange was the highlight.
Cryptocurrency scams have existed for as long as cryptos have existed. MtGox was hacked from 2011 to 2014 and $450 million in Bitcoin was lost (BTC). Due to increased interest in cryptos from investors looking for safe havens for their money, the JPGold Coin team has embarked on crypto-education journey.
How To Know If A Cryptocurrency Is Scam
In recent years we’ve seen an increase in scam artists who try to capitalize on investors’ enthusiasm for new technologies. They convince investors they’ve discovered some amazing opportunity for making money quickly. Most cryptocurrency scams are from ICO; 50% of ICOs never get listed, most times investors don’t get refund and the project team are usually not known.
Popular Crypto Projects
There are more than 1,500 cryptocurrencies available today, but the most popular ones include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH). Also, there are countless apps where you can buy/sell cryptocurrencies the most popular is Binance and Coinbase. However, do note that being popular doesn’t mean investors cannot be scammed. For example, FTX was in the top 10 global exchanges on CoinMarketCap yet it’s one biggest crypto scheme scam of the decade; defrauding investors of $10billion.
How To Identify A Cryptocurrency Scam
There are several signs that indicate whether or not a cryptocurrency project is a scam:
1) Lack of transparency – If there are no clear rules on how the company operates or what happens if you lose your money then this is definitely an indicator that there is something fishy going on behind closed doors.
2) No clear roadmap – When looking at any new technology or product it’s important to see if there is a road map laid out for growth over time so that you know what kind of success rate you can expect when investing in this particular project over time.
3) An abundance of testimonials from people who say they’ve made huge profits from joining this particular project (even if they don’t have proof).
4) The project claims that it has been around for a long time, but no one knows who created it or how long ago this was done. JPGold Coin was launched in March 2021, there are verifiable articles on CoinTelegraph, NewsBTC, Binance; also it is listed currently on LAToken.
5) The project is promising high returns on investment and asking for large amounts of money from investors without providing any proof of concept or prototype, or even providing any information about how the company will use these funds.
7) In addition, according to Forbes watch out for phishing scams, SIM-swap scams, fake crypto wallet and exchange scams, investment and upgrade scams.
In summary, it’s best you research on crypto projects using the aforementioned indicators before investing.