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Here are the top three crypto scams of 2018

Unlike 2017, last year saw its fair share of up and downs for cryptocurrencies. It will be remembered as a bear market. However, the falling value of virtual currencies in 2018 did not deter scammers from preying on unsuspecting individuals. Below we are going to have a look at three top crypto scams of 2018.

Telegram and Discord pump and dump crypto scams

Pump and dump scams are still rife within the crypto space as recent research from the Social Science Research Network found out. The most popular platforms to carry out these scams are messaging apps where intense marketing takes place.

Researchers identified 3,767 and 1,051 pump and dump scams on Telegram and Discord respectively — a number that indicates how prevalent the practice is within the space. The scams targeted various altcoins however Bitcoin was not immune to the schemes. The research found at least 82 scams that targeted Bitcoin on the two apps.

Currently, in the U.S. the practice is considered a securities fraud by the U.S. Securities and Exchange Commission (SEC).

Bitconnect scam

Bitconnect was the biggest among crypto scams of 2018. The platform promised investors around the globe impressive returns through a lending scheme. Users would trade their Bitcoins in exchange for Bitconnect Coin (BCC). They would then lend out the BCC at varying rates of interest.

It didn’t take long before allegations of running a Ponzi scheme begun to surface. What made the project look even more suspicious was their referral system and the fact that the platform’s owners were unknown. This led to a cease and desist order from regulators in the U.S.

 However, investors worst fears were confirmed earlier last year when the anonymous owners of the platform sold their holdings and made away with reserves of BTC.

What’s your take on these top crypto scams of 2018, share your thoughts in the comment section below.


Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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