5 Cryptocurrency Scams to Avoid, According to LifeFlip Media CEO Eric Mitchell

Bitcoin led the way, creating the first generation of crypto billionaires and blockchain entrepreneurs. In their wake, altcoins have been popping up everywhere as potential gateways to profits. Although this cryptocurrency craze provides great opportunity, it also spawns a large number of cryptocurrency scams.

“This new frontier of decentralized digital finance can be a maze for new investors,” says Eric Mitchell, sports analyst and head of media at LifeFlip Media. “There are a lot of bad actors who know that and are looking to take advantage of those who are just starting to explore the complex world of cryptocurrencies.”

Positioned at the nexus of talent, content, brands, technology and sports, LifeFlip Media creates limitless opportunities for the storytellers, tastemakers, icons and thought leaders who shape popular culture. In film, television, music, sports, digital media, marketing and more, we represent actors, directors, writers, producers, musical artists, comedians, authors, athletes, coaches, chefs, designers, fashion talent, consumer brands and plus. .

And, just like with traditional pump and dump schemes and other stock scams, there are signs you can look for to avoid falling for the fraud. Here are 5 cryptocurrency scams to avoid, according to Mitchell:

#1 – DeFi Postponed Stroke

DeFi, or decentralized finance, is an attempt to renew and transform the traditional methods and models of the current financial infrastructure. While some big-name DeFi platforms guarantee the highest returns on money lending, some are scams through and through.

These fake platforms entice investors to lend money by promising huge returns, but keep the money that investors lend. Such scams are executed so skillfully that investors often fail to recover the lost amount.

#2 – Non-Fungible Token Scams (NFT Scams)

Non-Fungible Tokens, or NFTs, are popular in current times. NFT is at risk of being duplicated.

It contains specific hashtag codes and whoever is in charge of hashtag codes has the power. There are reported cases where NFT hack recovery is difficult as cracking hashtag codes is not a layman’s job.

#3 – Altcoin Bombs and Dumps

An altcoin is often counted as one of the cheapest and most illiquid penny stocks with small market caps.

Crypto pump and dump are characteristic of penny stocks and altcoin to join the flow. However, altcoins that are volatile often fall into the hands of scammers and criminals.

#4 – Virus and Malware Scams

New strategies and creative attempts to break into an investor’s wallet can sometimes be tedious.

To circumvent this overwhelming number of new ways to execute wallet breaches, hackers and criminals are turning to old malware and viruses to gain access to crypto wallets.

For this reason alone, two-factor authentication can be a protective shield for crypto wallets.

#5 – Fake ICOs

Fake initial coin offerings, or ICOs, are a still prevalent issue that worries cryptocurrency investors.

In 2017, we witnessed an explosion of ICO scams when the ICO rate reached 80%. Fortunately, the number had degraded in the following years.

Fake ICOs are still a source of concern for investors even today. Big Coin stole $6 million from customers.

To learn more about these types of scams, you can check out Mitchell’s in-depth look below:

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